Published on 6 Nov 2023 on Zacks via Yahoo Finance
Wall Street Analysts Think Denali Therapeutics Inc. (DNLI) Could Surge 121.53%: Read This Before...
Denali Therapeutics Inc. (DNLI) closed the last trading session at $21.83, gaining 4.4% 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 $48.36 indicates a 121.5% upside potential.
The mean estimate comprises 11 short-term price targets with a standard deviation of $22.16. While the lowest estimate of $26 indicates a 19.1% increase from the current price level, the most optimistic analyst expects the stock to surge 381% to reach $105. It's very important to 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 a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.