Is Denali Therapeutics (DNLI) the Most Promising Mid-Cap Healthcare Stock Under $50?

Denali Therapeutics (NASDAQ:DNLI) is one of the most promising mid-cap healthcare stocks under $50.

On December 11, Wedbush analyst Laura Chico maintained her bullish stance on Denali Therapeutics (NASDAQ:DNLI). She rated the stock Buy with a $30 target price, implying a notable 78% upside for investors.

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Chico’s price target is a revision from the previous target of $31, but this comes after the company’s completion of a recent $200 million secondary offering. The company issued 9.1 million additional common shares at $17.50 per share. The issuance also involved pre-funded warrants to buy an additional 2.3 million common shares. Chico estimated the overall net proceeds from this offering to be in the range of $217 million. She sees such equity financing to be logical at a time when the company is engaged with the FDA regarding a potential tivi PRV issuance.

Besides that, Denali Therapeutics (NASDAQ:DNLI) stock has received Buy calls from all 11 analysts by the close of play on December 19. According to analyst estimates, the stock’s median 1-year price target is $31 per share, implying nearly 84% upside at current market levels.

Denali Therapeutics (NASDAQ:DNLI) is a biotechnology company that utilizes proprietary technology to address neurodegenerative diseases. Through their TransportVehicle™ platform, and by leveraging the power of biotherapeutics, they develop medicines for some very serious conditions, including lysosomal storage.

While we acknowledge the risk and potential of DNLI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DNLI and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.