TD Cowen analyst Lance Vitanza has maintained their bullish stance on MSTR stock, giving a Buy rating on September 8.
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Lance Vitanza has given his Buy rating due to a combination of factors, primarily focusing on Strategy’s strategic management of its capital markets activities. The company has shown a preference for issuing preferred shares over common stock, which indicates a belief that its common stock is undervalued in comparison to the price of Bitcoin. This strategic move suggests that the management is effectively leveraging market demand for Bitcoin-backed credit instruments.
Lance Vitanza also highlights the robust demand for Bitcoin credit, which further supports the company’s decision to issue preferred shares. By raising $68.2 million through preferred shares, Strategy was able to acquire an additional 525 bitcoins and secure $8 million in cash for future dividends. This approach not only enhances the company’s Bitcoin holdings but also optimizes its capital structure, making it a compelling investment opportunity.
According to TipRanks, Vitanza is a 5-star analyst with an average return of 25.3% and a 54.21% success rate. Vitanza covers the Communication Services sector, focusing on stocks such as Liberty Media Liberty Formula One, Clear Channel Outdoor, and TKO Group Holdings.
In another report released on September 8, Benchmark Co. also reiterated a Buy rating on the stock with a $705.00 price target.