TD Cowen analyst Lance Vitanza maintained a Buy rating on Strategy today and set a price target of $590.00.
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Lance Vitanza’s rating is based on Strategy’s unique position as the largest corporate holder of bitcoin and its ability to offer a diverse range of bitcoin-backed securities tailored for institutional investors. This strategic advantage is difficult to replicate, providing Strategy with a significant cost of capital benefit. Vitanza projects a price target of $680, supported by a 10x multiple of the anticipated bitcoin gains in 2025.
Furthermore, Vitanza highlights the company’s ongoing commitment to channeling capital into bitcoin, which is expected to continue in the foreseeable future. By evaluating key performance indicators and forecasting metrics, such as BTC $ Gain and BTC Hurdle, Vitanza concludes that Strategy’s capital market instruments present favorable risk-return characteristics. The analysis suggests that shareholders stand to benefit from the growth of preferred issuance, which offers superior yield profiles compared to common stock issuance, despite higher required returns on bitcoin performance.
According to TipRanks, Vitanza is a 5-star analyst with an average return of 27.9% and a 55.22% success rate. Vitanza covers the Communication Services sector, focusing on stocks such as Liberty Media Liberty Formula One, KORE Group Holdings, and Clear Channel Outdoor.