Strategy (MSTR), the largest corporate owner of Bitcoin in the world, received a boost from TD Cowen’s price target hike. Top analyst Lance Vitanza of TD Cowen lifted the price target on MSTR stock to a street-high $680 (50.77% upside), up from $590, while reiterating a Buy rating. Vitanza, who ranks 292 out of more than 9,860 analysts tracked by TipRanks, has a success rate of 55% and delivers an average return per rating of 27.90% over a one-year timeframe.
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In its research note yesterday, TD Cowen highlighted that Strategy is the world’s largest corporate holder of Bitcoin, with total holdings now exceeding 601,000 BTC. The firm recently added another 4,225 BTC for about $472.5 million, at an average price of roughly $111,827 per coin.
Bitcoin Upside Could Propel MSTR Shares Higher
The five-star analyst expects Bitcoin to rise and possibly reach $155,000 by December. If that happens, TD Cowen believes Strategy’s stock could rally sharply, as MSTR has long traded in close step with Bitcoin’s price.
Vitanza noted that Strategy’s use of debt and equity to fund its Bitcoin purchases gives it a clear cost advantage over other players. He believes this approach makes it tough for rivals to compete with Strategy. Looking ahead, the analyst expects MSTR to keep buying more Bitcoin using funds raised through the capital markets.
On top of that, Vitanza noted that Strategy offers a variety of Bitcoin-backed investment options built for big investors, which may continue to strengthen its position in the market.
Is MicroStrategy a Good Stock to Buy?
Strategy (formerly known as MicroStrategy) continues to win over analysts. According to TipRanks, the stock currently holds a “Strong Buy” rating based on 12 analyst reviews: 11 Buys, zero Holds, and just one lonely Sell. The average 12-month MSTR price target is $541, implying 20% upside potential.
