Clear Street has raised its price target for MSTR to $211 from $201 and maintained a buy rating on the stock, according to a research note. The firm cited how the Bitcoin treasury company Strategy has improved its financial position through STRC repurchases and increased USD reserves, and can now resume BTC purchases with STRC trading near par.
Analyst Raises Target, Reiterates Buy
The firm’s analyst raised the Strategy stock target to $211 while reiterating the buy rating. Clear Street noted that the Bitcoin treasury firm spent most of Q3 strengthening its financial position by issuing common stock to repurchase STRC shares and increase its USD reserves.
At the same time, the MSTR stock issuance outpaced Bitcoin accumulation, which the firm admitted poses a risk, especially for common shareholders. However, the STRC buybacks have so far paid off, with the stock trading near its par value of $100.
With STRC trading near $100, Clear Street believes Strategy is well positioned to resume issuing preferred security and use the proceeds to grow its bitcoin per share (bps) metric. Strategy announced a 267 BTC buy on Monday and has notably bought Bitcoin for the last five weeks.
Key Events to Watch
Meanwhile, the firm highlighted the October 29 earnings results as a key event to watch for the company and the MSTR stock. Notably, preferred stockholders will vote just a day before the earnings results on the proposal to switch to daily dividend payments for the STRC stock. Strategy has already declared conditional daily dividends for November ahead of the October 28 vote.
MSCI’s upcoming announcement could also affect the stock, as the index provider will announce on November 11 whether the Bitcoin treasury firm will remain on its index. This follows the adoption of a new methodology which classifies treasury firms as non-operating companies.
The MSTR stock is up today amid Clear Street’s raise of the price target. The stock is currently trading at around $146, up over 7%, according to TradingView data. The stock is also up over 5% in the last five days.
