Strategy Inc. (NASDAQ: $MSTR) is getting a vote of confidence from TD Cowen, but with a much lower price target attached to a weaker Bitcoin (CRYPTO: $BTC) outlook.
The firm cut its Strategy target to $260 from $400 while keeping a Buy rating on the stock
The reduction was tied mainly to TD Cowen’s lower Bitcoin forecast, not Strategy’s new Digital Credit Capital Framework. TD Cowen now expects Bitcoin to end 2026 near $100,000, down from its prior estimate of about $140,000. Its 2027 forecast also moved lower, to roughly $135,000 from $190,000.
The shift drove most of the target reduction, while the analysts left their assumptions for Strategy’s future Bitcoin purchases unchanged and kept the earnings multiple at 3x. More From Cryptoprowl: The lower target still implies a large rebound from Monday’s $92.68 closing price, a gap TD Cowen acknowledged could look “out of context.” That leaves the call balanced between a more cautious Bitcoin path and continued belief that Strategy can manage its capital structure through the downturn. Strategy is also giving investors more detail on how it plans to manage liquidity through the downturn.