TD Cowen, Benchmark Reaffirm Buy on Strategy; Stock Drops 4%
TD Cowen and Benchmark reiterated their buy ratings on Strategy after Michael Saylor said the company’s reserves would no longer be 100% crypto. Analysts view the dollar cushion as a prerequisite for future bitcoin purchases, not a change in strategy.
TD Cowen and Benchmark both maintained their buy recommendations on Strategy (formerly MicroStrategy) following Michael Saylor’s statement that the firm’s reserves would no longer consist entirely of cryptocurrency.
Analysts characterized the decision to hold a dollar buffer as a condition for future bitcoin acquisitions rather than a shift in the company’s overall direction. Their price targets, however, diverged: Benchmark lowered its target to $435 from $570, while TD Cowen sees fair value at $260 per share.
Shares of Strategy fell 4% to $93.28, extending year-to-date losses to 38.6%.
Source: ForkLog