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Investing.com - Monness, Crespi, Hardt has reiterated its Sell rating on MicroStrategy (NASDAQ:MSTR) with a price target of $175.00, maintaining its bearish outlook on the Bitcoin-focused company. The stock currently trades at $344.37, with analyst targets ranging from $175 to $705, according to InvestingPro data.
The research firm cited several factors behind its continued negative stance, including concerns about MicroStrategy’s premium valuation relative to its Bitcoin holdings, which currently stands at approximately 1.34 times compared to a median of 1.21 times. The company’s high revenue valuation multiple and P/E ratio of 17.2 reflect this premium pricing, while operating with a moderate debt level of $8.2 billion.
Monness, Crespi, Hardt expects this premium to contract further due to multiple factors, including implied volatility breakdown limiting the convertible debt portion of the company’s "42/42 Plan" and the growing dilutive impact of interest payments on various token issuances.
The firm also highlighted concerns about MicroStrategy’s capital raising strategy, noting that without access to traditional debt markets, the company’s plan relies on increasing dilution through common stock offerings to fund Bitcoin purchases at prices significantly above the modified net asset value.
The research note also positioned Bitcoin treasury companies like MicroStrategy as typically appearing in later stages of Bitcoin upcycles, with the current cycle now in its 32nd month since the December 2022 trough, suggesting potential vulnerability to broader macroeconomic factors. For deeper insights into MSTR’s valuation metrics and comprehensive analysis, InvestingPro subscribers can access detailed financial health scores and 12 additional ProTips that help evaluate the company’s investment potential.
In other recent news, Strategy reported record-breaking second-quarter 2025 results, surpassing consensus earnings forecasts. The company has raised its 2025 Bitcoin KPI targets for the second time this year and introduced a full-year financial outlook, projecting $34 billion in operating income and $24 billion in net income. Despite these positive results, Strategy’s stock experienced a decline. H.C. Wainwright maintained its Buy rating and $521 price target for the company. Additionally, Mizuho (NYSE:MFG) increased its price target for Strategy to $586, citing the company’s continued outperformance relative to Bitcoin. Clear Street also raised its price target to $537, reflecting optimism about stronger Bitcoin yield and higher forward Bitcoin balances. Meanwhile, Sequans Communications announced a $384 million strategic investment to launch its Bitcoin treasury initiative. Northland initiated coverage on Sequans with an Outperform rating and a $3.50 price target, influenced by this new business strategy. These developments indicate a growing interest and strategic shift toward Bitcoin-related initiatives within the industry.
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