Denali Therapeutics price target lowered to $30 from $31 at Wedbush

Wedbush analyst Laura Chico lowered the firm’s price target on Denali Therapeutics (DNLI) to $30 from $31 and keeps an Outperform rating on the shares. The firm notes the company completed a $200M secondary offering this week. The deal included issuance of 9.1M shares of common stock at $17.50/share, and pre-funded warrants to purchase an additional 2.3M shares of common stock. The deal also included an overallotment of 1.7M additional shares. Assuming exercise of the shoe, Wedbush estimate the offering will generate $217M in net proceeds. Its prior estimates did not incorporate a near-term financing. However, with the negotiations continuing with FDA around a potential tivi PRV issuance, the raise makes sense, the firm argues.