H.C. Wainwright lifts Strategy stock target to $521 on raised guidance

Published 02/05/2025, 13:14
© Shutterstock

On Friday, H.C. Wainwright analyst Mike Colonnese increased the price target for Strategy (NASDAQ:MSTR) to $521.00, up from the previous target of $480.00, while reiterating a Buy rating on the stock. Currently trading at $381.60, MSTR has demonstrated remarkable momentum with a 237% return over the past year. The adjustment follows Strategy’s announcement on Thursday, where the company presented an updated 2025 guidance for key metrics during its first-quarter earnings call, which took place after market hours. According to InvestingPro analysis, the stock appears overvalued at current levels.

Strategy reported a significant revision to its capital raising strategy, doubling the planned amount to $84 billion through 2027, up from the initially projected $42 billion. This ambitious capital increase is aimed at supporting the company’s growth and investment plans over the next several years. InvestingPro data shows the company operates with a moderate debt level, with a debt-to-equity ratio of 0.4, while maintaining a current ratio of 0.71.

In response to the updated financial outlook, H.C. Wainwright has also adjusted its year-end 2025 Bitcoin (BTC) holdings estimate for Strategy by 15%, now expecting the company to hold approximately 691,249 BTC. The raised price target of $521 is based on an unchanged 2x premium to the company’s net asset value (NAV).

The analyst’s decision to maintain a Buy rating indicates a positive outlook on Strategy’s stock, reflecting confidence in the company’s ability to meet its newly set goals and capitalize on its increased capital raising efforts.

Strategy’s stock price is likely to be influenced by these updated targets and guidance, as investors and stakeholders adjust their expectations in light of the company’s ambitious plans for growth and investment in the coming years.

In other recent news, MicroStrategy Incorporated reported disappointing first-quarter 2025 earnings, missing analyst expectations significantly. The company recorded an earnings per share (EPS) of -16.53, falling short of the anticipated -0.11, with revenue at $111.1 million compared to the projected $117.08 million. Despite the earnings miss, MicroStrategy’s cloud subscription services showed robust growth, increasing by 62% year-over-year. Benchmark analysts maintained a Buy rating on MicroStrategy, setting a price target of $650.00, based on the company’s strategic investments and projected value of its bitcoin holdings and software business by 2026. The analysts highlighted MicroStrategy’s adeptness at creating shareholder value through its treasury operations, which include substantial bitcoin acquisitions. As the largest corporate holder of Bitcoin globally, MicroStrategy’s strategic approach continues to draw attention from investors and analysts alike.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.