Denali Therapeutics price target raised to $40 from $32 at Morgan Stanley

Morgan Stanley analyst Sean Laaman raised the firm’s price target on Denali Therapeutics (DNLI) to $40 from $32 and keeps an Overweight rating on the shares. The firm sees a continuation of U.S. small-to-mid cap biotech’s outperformance in 2026 as commercial names transition from “capital consumers to producers” and Large Cap Biopharma faces a looming patent cliff, the analyst tells investors in an outlook note for the group.