Top Bernstein analyst Gautam Chhugani cut his price target on Strategy (MSTR) to $450 from $600 but kept an Outperform rating. The call came after an investor meeting in Dubai with Executive Chairman Michael Saylor, where the analyst reviewed the company’s balance sheet and long-term plan.
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The lower $450 target reflects a smaller premium on Strategy’s Bitcoin holdings. Chhugani now uses a premium of about 46%, down from 55% in his earlier model. Even with this cut, the price target still points to about 151% upside from current levels.
The 5-star analyst said the meeting gave him a clearer view of Strategy’s financial position. He noted that some market worries are overstated. Chhugani pointed to what he sees as an over-secured balance sheet and roughly 21 months of cash, which he believes gives the company enough room to deal with swings in Bitcoin prices.
Chhugani also said Strategy is moving closer to a simple model built around holding Bitcoin and offering basic yield and savings products tied to it.
At the same time, he noted that Strategy has often traded at a premium of close to 60% above its Bitcoin value in the past. He believes the premium can return if Bitcoin prices recover. Because of this, he sees the recent drop in the stock as a better entry point for long-term investors.
It is worth noting that Chhugani ranks 230 out of more than 10,000 analysts tracked by TipRanks. He has a success rate of 63%, with an average return per rating of 51% over a one-year timeframe.
Is Strategy a Good Stock to Buy?
Analyst sentiment toward Strategy remains overwhelmingly bullish. Wall Street rates the stock a Strong Buy, based on 14 analysts tracked in the last three months. Of these ratings, 12 analysts call it a Buy, two say a Hold, and none recommend a Sell. The average 12-month MSTR price target sits at a massive $493.58. This target implies an upside potential of 175.76% from the last price.
