Denali Therapeutics price target lowered to $32 from $36 at Stifel

Stifel analyst Paul Matteis lowered the firm’s price target on Denali Therapeutics to $32 from $36 and keeps a Hold rating on the shares. The firm notes that the company recently shared initial positive behavioral/cognitive clinical data from the Phase 1/2 of DNL310 which are consistent with prior data and supportive of an efficacy signal. Stifel believes the main question continues to center around whether there could be an accelerated path to market, or, if not, how to think about trial risk as the Phase 2/3 is the first placebo- controlled trial for the drug. The firm is encouraged to see data accrue across the pipeline, but says 2023 remains light in terms of major catalysts.