In a report released today, Lance Vitanza from TD Cowen maintained a Buy rating on Strategy, with a price target of $535.00.
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Lance Vitanza has given his Buy rating due to a combination of factors that highlight Strategy’s unique position and potential for growth. Despite the potential exclusion from MSCI indexes, Strategy’s aggressive accumulation of bitcoin positions it to benefit significantly if bitcoin becomes more integrated into global finance. Vitanza suggests that any negative bias towards Strategy is inherently a bias against bitcoin itself, and he anticipates that Strategy will outperform if bitcoin’s value recovers.
Moreover, Vitanza emphasizes that Strategy is not merely an investment fund but a public operating company with a substantial software business and an innovative treasury strategy involving bitcoin. This approach not only differentiates Strategy from traditional funds but also offers investors a novel opportunity to engage with bitcoin-backed securities. The potential removal from indexes, according to Vitanza, seems arbitrary and could lead to unnecessary selling pressure, yet he sees this as an opportunity given the company’s current undervaluation.
In another report released on November 17, Bernstein also reiterated a Buy rating on the stock with a $600.00 price target.