Lance Vitanza, an analyst from TD Cowen, maintained the Buy rating on Strategy. The associated price target remains the same with $500.00.
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Lance Vitanza has given his Buy rating due to a combination of factors that highlight Strategy’s strategic moves in the capital markets and its significant bitcoin activity. The company’s recent acquisition of 10,624 bitcoins demonstrates its aggressive approach to capitalizing on perceived market opportunities, supported by a newly established cash dividend reserve that empowers management to make bold investment decisions.
Furthermore, Strategy’s funding of these bitcoin purchases through the sale of common stock and issuance of preferred shares indicates a strong financial strategy aimed at leveraging market conditions. This unexpected yet strategic move necessitates a substantial upward revision of future estimates, reflecting confidence in the company’s direction and the potential for bitcoin’s continued upward trajectory. Vitanza’s rating underscores the belief that Strategy’s actions position it favorably against market skepticism and align with a positive outlook on bitcoin’s performance.
In another report released on December 5, Bernstein also assigned a Buy rating to the stock with a $450.00 price target.