UPDATE: William Blair Starts MicroStrategy (MSTR) at Outperform
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William Blair analyst Bhavan Suri initiates coverage on MicroStrategy (NASDAQ: MSTR) with a Outperform rating.
The analyst comments "MicroStrategy’s stock will be driven by revenue growth, margin expansion, and the continued appreciation of bitcoin price. We see a favorable risk/reward trade-off over the next two years and view MicroStrategy as a unique asset that provides investors with exposure to the cryptocurrency market. At the current price of $657.16 per share, the company has an enterprise value of $5.9 billion, which adjusts for the $1,947 million of bitcoin that the company reported on its balance sheet for the quarter ending March 31, 2021. This implies an average bitcoin price of $21,315. As of April 28, 2021, the company owned 91,579 bitcoin. Using a more recent 30-day average bitcoin price of $55,251, MicroStrategy’s bitcoin has a total value of $5.1 billion. Adjusting for the $5.1 billion of bitcoin MicroStrategy has an enterprise value of $2.8 billion, implying a 2022 enterprise-value-to-sales multiple of 5.4 times."
Shares of MicroStrategy closed at $635.62 yesterday.
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