Benchmark reiterates Buy rating on MicroStrategy stock, $705 price target

Investing.com - Benchmark has reiterated its Buy rating on MicroStrategy (NASDAQ:MSTR) with a price target of $705.00, according to a research note released Tuesday. The stock, currently trading at $334.41, has demonstrated remarkable strength with a 152.54% return over the past year. According to InvestingPro data, analyst targets range from $175 to $705, reflecting diverse views on the company’s potential.

The firm’s analysis is based on a sum-of-parts valuation that includes the projected value of MicroStrategy’s bitcoin holdings as of year-end 2026, a 10x multiple of its fiscal year 2026 estimated bitcoin dollar gain, and the projected value of its software business as of year-end 2026.

Benchmark noted that MicroStrategy remains the "industry standard and benchmark" among bitcoin strategy companies, citing not only the size of its holdings but also the financial architecture it has built around bitcoin.

The research firm highlighted that MicroStrategy holds 632,457 bitcoins as of August 24, which it described as the largest holdings of any publicly traded company.

The firm’s assessment comes amid what it characterized as "a proliferation of bitcoin strategy companies" in the market, with MicroStrategy maintaining its position as the leading player in this space.

In other recent news, Strategy Inc reported updates to its at-the-market equity and preferred stock offering programs, along with new details about its Bitcoin holdings. Between August 18 and August 24, the company sold 875,301 shares of its class A common stock, generating net proceeds of approximately $309.9 million. Furthermore, Strategy Inc announced an update to its dividend adjustment framework for its Variable Rate Series A Perpetual Stretch Preferred Stock, which includes potential changes in dividend rates based on stock price movements. In analyst coverage, Monness, Crespi, Hardt reiterated a Sell rating on Strategy Inc, citing concerns over its premium valuation relative to its Bitcoin holdings. Meanwhile, Mizuho raised its price target for Strategy Inc to $586, maintaining an Outperform rating, noting the company’s strong performance compared to Bitcoin. Additionally, Northland initiated coverage on Sequans Communications with an Outperform rating, referencing the company’s Bitcoin treasury strategy, which follows an approach similar to that of Strategy Inc. These developments provide insight into Strategy Inc’s financial strategies and market perceptions.

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