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Canaccord maintained a Buy rating on Strategy and raised MSTR price target to $175.
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Analyst expects stronger balance sheet and renewed potential for BTC acquisitions amid market recovery.
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MSTR stock price dropped 1.20% in premarket on Tuesday as <a href="https://xpertsstudio.com/where-are-bitcoin-ethereum-and-ripple-price-heading-now/” title=”Where are Bitcoin, Ethereum, and Ripple price heading now?”>Bitcoin slips below $79K.
Canaccord has raised Michael Saylor’s Strategy stock price target, while maintaining a Buy rating. MSTR stock price is trading more than 1% down in premarket on Tuesday amid Bitcoin price pullback.
Canaccord Recommends Buy on Michael Saylor’s Strategy
Canaccord raised MSTR stock price target to $175 from $130, maintaining a Buy rating. The company’s Bitcoin-focused strategy benefits from improving crypto market conditions.
Analyst Joseph Vafi sees a materially brighter setup over the coming weeks, with a stronger balance sheet and renewed potential for BTC acquisitions. Moreover, recovering STRC and other preferred shares and favorable macro conditions for crypto also benefit Michael Saylor’s Strategy.
The valuation assumes Bitcoin gains around 20% over the next 12 months and mNAV recovers to roughly 1.2x, which would support renewed Bitcoin purchases.
Strategy increased its USD reserve to $5.1 billion, establishing a “USD Cash” pool as part of its Digital Credit Capital Framework. This will support Bitcoin acquisitions, preferred dividends, debt servicing, potential share or preferred repurchases, and other treasury purposes.
The Bitcoin holdings stood near 846,000 BTC worth over $73 billion. Canaccord expects its preferred shares to reclaim $100 par value to enable Strategy to further increase its Bitcoin holdings. Michael Saylor’s Strategy has an unrealized profit of over $4.2 billion as BTC prices surge past $81,000 today.
MSTR Stock Price Action amid Bitcoin Recovery
MSTR stock price closed 2.8% higher at $122.63 on Monday, up nearly 30% in a week. However, the MSTR stock has dropped more than 1.20% in premarket trading hours on Tuesday.
Meanwhile, Strategy’s preferred shares (STRC) jumped to $97.21 today. This is important to prevent further MSTR Class A common stock dilutions.
Bitcoin has rallied more than 25% over a week, but faces resistance at 50-WMA at $81,000 and fell below $79K. The 24-hour low and high are $78,010 and $81,160, respectively.
The latest profit booking comes ahead of PCE inflation data and Fed Chair Kevin Warsh’s speech this week. However, improved liquidity, spot buying, and broader risk-asset sentiment due to US Treasury’s plans to buyback bonds helped hold gains.
Strategy’s performance remains closely linked to Bitcoin’s trajectory and its ability to continue accretive accumulation through its evolving capital framework.
Prediction market data shows 71% of Polymarket participants expect Bitcoin price to hit $85,000 by December 31, 2026.
Source: finance.yahoo.com