Brokerage raises MSTR target 140% citing accelerating BTC purchases and improved balance sheet flexibility.
TD Cowen increased its price target for MicroStrategy (MSTR) to $400, a 140% upside from current levels. The brokerage cited accelerating Bitcoin purchases and a cleaner balance sheet as key catalysts for the upgrade, maintaining a buy rating on the stock.
MicroStrategy holds 843,738 BTC, acquired for $64 billion, with Bitcoin per 1,000 fully diluted shares rising to 2.21 times from 1.95 times at year-end. Analysts noted the company’s BTC accumulation outpaces share issuance despite rising dilution. The firm’s balance sheet improvements reduce refinancing risks, enhancing financial flexibility.
MSTR shares have fallen 60% over the past year, trading at $166.63. The new target reflects confidence in the company’s aggressive Bitcoin strategy and credit quality improvements.