Analyst Thomas Shrader from BTIG maintained a Buy rating on Denali Therapeutics and keeping the price target at $32.00.
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Thomas Shrader has given his Buy rating due to a combination of factors that highlight Denali Therapeutics’ promising future prospects. One of the key reasons is the company’s recent royalty agreement, which involves selling a portion of future TIVI net sales for a substantial upfront payment. This agreement suggests a significant valuation for TIVI, which is expected to dominate the MPS II treatment landscape and potentially become a billion-dollar drug. The management’s confidence in TIVI’s market potential is further supported by their expectation to price it at a premium compared to existing treatments, given its ability to address central nervous system issues that current therapies do not.
Additionally, Denali Therapeutics is making progress with its DNL126 program, having completed Phase 1/2 enrollment and reached an agreement with the FDA that could lead to accelerated approval based on compelling results. This progress, along with ongoing discussions about labeling, indicates a potential for earlier-than-expected approval decisions. Furthermore, the company’s innovative approach in its PGRN replacement program and the potential benefits of its shuttle technology in increasing cellular uptake of targeted therapies add to the positive outlook. Despite a clinical hold on DNL952, the overall advancements and strategic initiatives contribute to Shrader’s optimistic view of Denali Therapeutics’ stock.
In another report released yesterday, H.C. Wainwright also maintained a Buy rating on the stock with a $32.00 price target.