Denali Therapeutics initiated with an Outperform at Baird

Baird last night initiated coverage of Denali Therapeutics (DNLI) with an Outperform rating and $31 price target The firm believes Denali is likely to establish itself as a commercial company in late 2025 or early 2026, with an accelerated approval by the FDA of lead agent tividenofusp alfa, an enzyme replacement therapy for Hunter syndrome. Due to its brain penetration, DNL310 should quickly take a significant market share from Elaprase’s $700M annual sales, the analyst tells investors in a research note. Baird also views Denali ‘s preclinical “Peak 2” programs targeting Alzheimer’s disease and Parkinson’s disease as attractive longer-term opportunities.