TD Cowen Reaffirms Buy on Strategy (MSTR), Trims Target to $640

Strategy Inc. (NASDAQ:MSTR) is one of the best multibagger stocks to invest in right now. The company positions itself as the world’s largest Bitcoin Treasury Company, a strategy shaped by CEO Michael Saylor’s view that bitcoin will replace gold as a non-governmental store of value. As of the end of July, the company held 628,791 bitcoins on its balance sheet, valued at about $70 billion at current prices.

Given the size of the company’s bitcoin exposure, the stock’s outlook is closely tied to movements in the cryptocurrency market. Reflecting that relationship, Lance Vitanza, an analyst from TD Cowen, reaffirmed a Buy rating on Strategy Inc. (NASDAQ:MSTR) on September 2. He also lowered his price target to $640 from $680. The revision reflects near-term pressures tied to bitcoin prices and broader capital market conditions.

The analyst highlighted that, during the week before his note, Strategy Inc. (NASDAQ:MSTR) purchased 4,048 bitcoins for $449.3 million, continuing its practice of raising equity to fund purchases. Vitanza said the strategy may draw skepticism, but noted that management is moving to take advantage of what many investors see as a temporary dip in bitcoin. He added that issuing stock to expand holdings reflects the company’s firm belief in bitcoin’s long-term place in global finance.

While the adjusted target acknowledges near-term volatility, the Buy rating reflects confidence in management’s consistent strategy of using balance sheet flexibility to grow exposure to digital assets.

Strategy Inc. (NASDAQ:MSTR), formerly known as MicroStrategy, is a technology company that calls itself the world’s first and largest Bitcoin Treasury Company. The company has substantial Bitcoin holdings, which form a core part of its corporate strategy. Additionally, its software platform provides enterprise analytics and data visualization solutions.

While we acknowledge the potential of MSTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.