TD Cowen analysts have raised their price target for Strategy (MSTR) to $400 per share, a 139% upside from current levels. The upgrade follows the company's $2 billion Bitcoin purchase last week.
"Strategy's treasury operations continue to exceed expectations, with faster-than-anticipated Bitcoin accumulation and accretive balance sheet actions," TD Cowen wrote.
Shares of MSTR traded around $164.79 on Tuesday, down about 1%, and are now 64% off their 52-week high of $457.22.
The bullish outlook is driven by Strategy's success in raising capital via its preferred equity offering, Stretch (STRC). Since the last earnings call, the firm raised roughly $1.95 billion through preferred equity, with nearly all proceeds deployed into Bitcoin. This allowed Strategy to acquire nearly 25,000 BTC in the last week, bringing its total holdings to 843,738 BTC, worth approximately $64.7 billion.
Analysts also noted that Strategy retired about $1.5 billion in convertible debt last week, calling it a “clear positive for both equity holders and creditors.”
TD Cowen also boosted the price target for Strive Asset Management (ASST) to $30, citing its similar preferred equity strategy.