Published on 21 Dec 2023 on Zacks via Yahoo Finance

Does Denali Therapeutics Inc. (DNLI) Have the Potential to Rally 123.38% as Wall Street Analysts...

Denali Therapeutics Inc. (DNLI) closed the last trading session at $21.17, gaining 17% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $47.29 indicates a 123.4% upside potential.

The average comprises 14 short-term price targets ranging from a low of $26 to a high of $105, with a standard deviation of $21.42. While the lowest estimate indicates an increase of 22.8% from the current price level, the most optimistic estimate points to a 396% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.