Mizuho Securities analyst Dan Dolev has maintained their bullish stance on MSTR stock, giving a Buy rating on December 1.
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Dan Dolev has given his Buy rating due to a combination of factors that highlight Strategy’s robust financial maneuvers and strategic liquidity management. The company has successfully raised $1.44 billion through equity sales, which has been strategically allocated to build a USD reserve. This reserve is designed to cover preferred dividend obligations for up to 21 months, showcasing the company’s commitment to maintaining liquidity without resorting to Bitcoin sales.
Furthermore, Strategy’s decision to equitize existing convertible notes at maturity and shift towards perpetual preferred equity instruments reflects a strategic move towards greater financial flexibility. The company is also well-positioned to sustain operations for over three years at current Bitcoin prices, with Bitcoin sales being a last resort. This approach, combined with the expectation of evolving credit ratings as institutional adoption of Bitcoin increases, underpins Dolev’s confidence in Strategy’s financial health and future growth potential.
In another report released on December 1, Bernstein also maintained a Buy rating on the stock with a $600.00 price target.
Based on the recent corporate insider activity of 90 insiders, corporate insider sentiment is neutral on the stock.