Strategy (MSTR) PT Raised to $175 at Canaccord
Canaccord analyst Joe Vafi raised the price target on Strategy (NASDAQ: MSTR) to $175.00 (from $130.00) while maintaining a Buy rating.
The analyst commented: "Like a breath of fresh air, the setup for MSTR has materially brightened over the last couple of weeks, in our view. Via a combination of company-specific and macro factors - all converging into the present moment we are seeing a much brighter investment case emerge for MSTR common shares. At the same time, the all-important preferred equity, STRC has bounced almost fully back to par. The past few months have been a test for the MSTR treasury model - and with some key learnings along the way, we see both the common and the preferred much more battle-tested moving forward. Looking forward, the balance sheet is now nicely war-chested up, and with dry powder available for more than just servicing dividends. At the same time, the US Treasury looks to have a radar lock on flattening the long end of the yield curve, which has been a boon to crypto spot prices the past few days. Our price target methodology for MSTR common stock remains consistent and assumes ~20% appreciation in BTC on a FTM basis, along with an mNAV that retraces to ~1.2x as the BTC acquisition engine begins again. Currently, mNAV sits at ~1.01x. Our new price is thus $175."