Strategy price target raised to $680 from $590 at TD Cowen

Investing.com - TD Cowen has raised its price target on Strategy (NASDAQ:MSTR) to $680.00 from $590.00 while maintaining a Buy rating on the stock. The move comes as MSTR shows remarkable momentum, with the stock surging over 210% in the past year and nearly 10% in the last week alone. According to InvestingPro analysis, the stock currently appears overvalued relative to its Fair Value.

The firm noted that Strategy holds the position as the world’s largest corporate holder of bitcoin, making it unique in the market.

TD Cowen highlighted that Strategy is the only company offering a wide range of bitcoin-backed securities designed for different classes of institutional investors.

The research firm believes that while competitors might attempt to emulate Strategy’s approach or develop their own solutions, none are likely to match or exceed Strategy’s cost of capital advantage.

The new price target of $680 is based on a 10x multiple of the company’s expected bitcoin dollar gain for 2025, according to TD Cowen’s analysis.

In other recent news, MicroStrategy Incorporated has reported significant developments regarding its financial activities and corporate governance. The company announced the sale of 797,008 shares of its Class A common stock, resulting in $330.9 million in net proceeds, as well as sales of various series of preferred stock, which collectively generated substantial funds. These proceeds were primarily used for acquiring 4,225 bitcoins, bringing MicroStrategy’s total bitcoin holdings to 601,550, with an aggregate purchase price of $42.87 billion. Additionally, the company launched a $4.2 billion at-the-market offering of its 10.00% Series A Perpetual Stride Preferred Stock, intending to use the proceeds for general corporate purposes, including further bitcoin acquisitions.

In corporate governance news, MicroStrategy elected Peter L. Briger, Jr. to its board of directors and announced the upcoming retirement of Wei-Ming Shao, its executive vice president and general counsel. Meanwhile, TD Cowen reiterated its Buy rating for MicroStrategy, citing the company’s recent bitcoin acquisitions and projecting significant bitcoin holdings by the end of fiscal year 2027. Furthermore, MicroStrategy unveiled the Strategy Mosaic platform, designed to unify enterprise data for AI applications, supporting connections to over 200 data sources. The platform aims to streamline data access and analytics across various systems, enhancing the company’s enterprise analytics software business.

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