Benchmark Reiterates MicroStrategy (MSTR) at Buy: 'potential addition to the S&P 500 represents an even bigger opportunity'

Benchmark analyst Mark Palmer reiterated a Buy rating and $650.00 price target on MicroStrategy (NASDAQ: MSTR).

The analyst commented: "

We are reiterating our Buy rating on MSTR and our price target of $650 based on a sum-of-the-parts analysis that includes (1) the projected value of the company’s bitcoin holdings as of YE26, (2) a 15x multiple of its FY26E BTC Yield, and (3) the projected value of its software business as of YE26. In valuing MSTR’s shares we are assuming that the price of bitcoin will reach $225,000 at YE26 and that the company will have accumulated 615,650 bitcoins at that point.

While potential inclusion in the Nasdaq-100 represents a near-term opportunity for MSTR, its potential addition to the S&P 500 represents an even bigger one in the medium-term. While the company easily meets the S&P 500’s criteria for minimum market cap and trading volume, it does not currently meet a couple of its other requirements: (1) positive earnings for the most recent quarter and (2) total positive earnings for the sum of its trailing four consecutive quarters. However, MSTR has stated that it plans to adopt new Financial Accounting Standards Board (FASB) guidance for the accounting treatment of bitcoin held on corporate balance sheets in 1Q25, which would position it to immediately begin reporting positive earnings."

For an analyst ratings summary and ratings history on MicroStrategy click here. For more ratings news on MicroStrategy click here.

Shares of MicroStrategy closed at $408.67 yesterday.

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