Canaccord raised its MSTR stock price target to $175 from $130 while maintaining a Buy rating, citing Bitcoin’s recovery, Strategy’s stronger balance sheet and renewed BTC acquisition potential.
BTC$78,405.00-1.02%MSTRCanaccord has raised its Strategy (MSTR) stock price target to $175 from $130, while maintaining a Buy rating on Michael Saylor’s Bitcoin-focused company.
The revised target comes as Strategy benefits from Bitcoin’s recent recovery, a stronger cash position and renewed potential to increase its BTC holdings. MSTR stock, however, slipped in premarket trading Tuesday as Bitcoin pulled back from its latest highs.
Canaccord analyst Joseph Vafi raised the MSTR stock price target to $175, up from $130, while keeping a Buy recommendation.
The updated outlook reflects what Canaccord sees as a stronger setup for Strategy over the coming months. Improving crypto market conditions, a stronger balance sheet and the potential for renewed Bitcoin purchases are among the factors supporting the higher valuation.
The valuation assumes Bitcoin gains approximately 20% over the next 12 months, while Strategy’s mNAV multiple recovers to around 1.2x. A stronger valuation multiple could give the company additional room to continue its Bitcoin acquisition strategy.
Canaccord also expects Strategy’s preferred shares to recover toward their $100 par value, which could further support the company’s ability to expand its Bitcoin holdings.
Strategy’s Bitcoin treasury remains at the center of the company’s investment story.
The company holds approximately 846,000 BTC, worth more than $73 billion based on the figures provided. With Bitcoin recently moving above $81,000, Strategy’s unrealized profit has climbed above $4.2 billion.
The company has also increased its USD reserve to approximately $5.1 billion through its “USD Cash” pool under its Digital Credit Capital Framework.
The reserve is designed to provide capital for several purposes, including additional Bitcoin purchases, preferred dividends, debt servicing and potential share or preferred stock repurchases.
That additional liquidity gives Strategy more flexibility as it manages its Bitcoin-focused capital structure.
MSTR closed Monday at $122.63, gaining 2.8% on the day and nearly 30% over the previous week.
However, the stock was down more than 1.2% in premarket trading Tuesday as Bitcoin gave back some of its recent gains.
Strategy’s preferred shares also moved higher, with STRC trading around $97.21. The recovery in preferred shares is significant because stronger pricing can help reduce pressure for further dilution of Strategy’s Class A common stock.
The company’s equity performance remains closely tied to Bitcoin, meaning sharp moves in BTC can quickly translate into larger moves in MSTR.
Bitcoin has gained more than 25% over the past week, but the rally has encountered resistance around the $81,000 area.
BTC subsequently slipped below $79,000, with the latest 24-hour range provided at $78,010 to $81,160.
The pullback comes ahead of upcoming PCE inflation data and a speech from Fed Chair Kevin Warsh. At the same time, improved liquidity, spot buying and broader risk-asset sentiment have helped support the wider crypto market.
For Strategy, the direction of Bitcoin remains critical.
A sustained BTC rally would strengthen the value of its existing holdings and potentially improve the economics of further accumulation. Conversely, a deeper Bitcoin correction could put pressure on both MSTR’s valuation and its preferred-share structure.
For now, Canaccord’s $175 MSTR price target reflects a more optimistic view of Strategy’s balance sheet, Bitcoin outlook and ability to continue its crypto treasury strategy.
Related: The latest Bitcoin rally has also lifted crypto-linked equities with Bitcoin recently reclaiming the $80,000 level as bullish momentum returned to the market.
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