LABU's Holdings Imply 58% Gain Potential

Written by Emily J. Thompson, Senior Investment Analyst

DNLI+12.53%

LABU+7.99%

REPL+8.82%

Source: NASDAQ.COM

Updated: Jul 10 2025

0mins

Source: NASDAQ.COM

ETF Analysis: The Direxion Daily S&P Biotech Bull 3X Shares ETF (LABU) has an implied analyst target price of $105.45, indicating a potential upside of 57.51% from its current trading price of $66.95.
Stock Performance Insights: Notable underlying holdings such as IDEAYA Biosciences, Denali Therapeutics, and Replimune Group show significant upside potential based on analysts' target prices, raising questions about the validity and optimism of these projections.

DNLI

$20.93+Infinity%1D

Analyst Views on DNLI

Wall Street analysts forecast DNLI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DNLI is 32.36 USD with a low forecast of 25.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

13 Analyst Rating

13 Buy

0 Hold

0 Sell

Strong Buy

Current: 18.600

Low

25.00

Averages

32.36

High

40.00

Current: 18.600

Low

25.00

Averages

32.36

High

40.00

Morgan Stanley

Sean Laaman

Overweight

maintain

$32 -> $40

2026-01-08

Reason

Morgan Stanley

Sean Laaman

Price Target

$32 -> $40

AI Analysis

2026-01-08

maintain

Overweight

Reason

Morgan Stanley analyst Sean Laaman raised the firm's price target on Denali Therapeutics to $40 from $32 and keeps an Overweight rating on the shares. The firm sees a continuation of U.S. small-to-mid cap biotech's outperformance in 2026 as commercial names transition from "capital consumers to producers" and Large Cap Biopharma faces a looming patent cliff, the analyst tells investors in an outlook note for the group.

UBS

NULL

Buy

initiated

$24 -> $25

2026-01-07

Reason

UBS

Price Target

$24 -> $25

2026-01-07

initiated

NULL

Buy

Reason

UBS assumed coverage of Denali Therapeutics with a Buy rating and a price target of $25, up from $24, as the analyst initiated or assumed coverage on 22 small-to-mid cap biotech names. After a rough period, biotech fundamentals are now inflecting, contends the analyst, who expects investor confidence to recover and sees this positioning biotech for strong performance in 2026.

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Wedbush

Laura Chico

Outperform

downgrade

$31 -> $30

2025-12-11

Reason

Wedbush

Laura Chico

Price Target

$31 -> $30

2025-12-11

downgrade

Outperform

Reason

Wedbush analyst Laura Chico lowered the firm's price target on Denali Therapeutics to $30 from $31 and keeps an Outperform rating on the shares. The firm notes the company completed a $200M secondary offering this week. The deal included issuance of 9.1M shares of common stock at $17.50/share, and pre-funded warrants to purchase an additional 2.3M shares of common stock. The deal also included an overallotment of 1.7M additional shares. Assuming exercise of the shoe, Wedbush estimate the offering will generate $217M in net proceeds. Its prior estimates did not incorporate a near-term financing. However, with the negotiations continuing with FDA around a potential tivi PRV issuance, the raise makes sense, the firm argues.

Wedbush

Laura Chico

Outperform

maintain

$30 -> $31

2025-12-05

Reason

Wedbush

Laura Chico

Price Target

$30 -> $31

2025-12-05

maintain

Outperform

Reason

Wedbush analyst Laura Chico raised the firm's price target on Denali Therapeutics to $31 from $30 and keeps an Outperform rating on the shares. The firm says most notable in the Denali Investor Day event, management indicated the tivi review remains ongoing with its late-cycle meeting wrapped, and key commercial hires are already made. No changes were made to Wedbush's tivi revenue estimates, which continues to assume modest revenue in 2026 and increasing to $433M by FY30.

About DNLI

Denali Therapeutics Inc. is a biopharmaceutical company. The Company is focused on developing a broad portfolio of product candidates engineered to cross the blood-brain barrier (BBB) for the treatment of neurodegenerative diseases and lysosomal storage diseases. It has developed a technology, called the TransportVehicle (TV), to address the BBB challenge. Its advanced TV-enabled program is tividenofusp alfa (DNL310, ETV:IDS) for the potential treatment of mucopolysaccharidosis II (MPS II or Hunter syndrome). Its TV-enabled clinical development portfolio also includes DNL126 (ETV:SGSH) for MPS IIIA (Sanfilippo syndrome) and DNL593 (PTV:PGRN) for frontotemporal dementia-granulin (FTD-GRN). Its small-molecule clinical development portfolio includes BIIB122/DNL151 (small molecule LRRK2 inhibitor) for Parkinson’s disease; and DNL343 (small molecule eIF2B activator) for amyotrophic lateral sclerosis (ALS). It is also exploring programs in oncology, inflammation, and other diseases.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.