15 Stocks Set to Explode in 2026

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6. Denali Therapeutics Inc. (NASDAQ:DNLI)

Number of Hedge Fund Holders: 35

Upside Potential: 112.67%

Denali Therapeutics Inc. (NASDAQ:DNLI) is one of the 15 stocks set to explode in 2026.

On November 7, 2025, H.C. Wainwright’s Andrew Fein reiterated his “Buy” rating on Denali Therapeutics Inc. (NASDAQ:DNLI) with a $32 price target.

Fein’s bullish stance followed Denali Therapeutics Inc. (NASDAQ:DNLI)’s Q3 results. He highlighted the upcoming launch of tividenofusp, which is the first transferrin receptor (TfR)-enabled medicine. Fein believes this launch will establish a commercial framework capable of supporting future enzyme replacement programs. He also discussed the recent acquisition of Avidity, which reflects the industry’s increasing recognition of TfR-based delivery as an efficient method for tissue penetration.

Moreover, with tividenofusp getting closer to its PDUFA date and DNL126 completing Phase 1/2 enrollment, the analyst believes Denali’s pipeline is advancing strongly. Furthermore, with its innovative Transport Vehicle (TV) platform seen as both clinically and commercially viable, investor confidence in the company’s ability to bank on its technological progress is bolstered. At the same time, Denali Therapeutics Inc. (NASDAQ:DNLI) is filing new Investigational New Drug applications (INDs) for programs targeting Alzheimer’s and Pompe disease, which the analyst believes will expand its market reach.

The analyst’s note followed the company’s earnings release on the previous day, where it reported a net loss of $126.9 million. Denali Therapeutics Inc. (NASDAQ:DNLI) reported slightly increased R&D expenses of $102 million, driven by operational start at its large molecule manufacturing facility in Salt Lake City, Utah. The company ended the quarter with $872.9 million in cash balance.

Denali Therapeutics Inc. (NASDAQ:DNLI), a South San Francisco-based biopharmaceutical company, is focused on the development of therapies for neurodegenerative and lysosomal storage diseases, improving drug delivery across the blood-brain barrier.

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