Citi Starts Coverage of Strategy (MSTR) with a Buy Rating

Strategy Inc (NASDAQ:MSTR) is one of the 10 Best American AI Stocks to Buy According to Analysts. On October 21, Citi initiated coverage of Strategy Inc (NASDAQ:MSTR), giving the stock a Buy rating and setting the price target at $485.

Citi initiated coverage of Strategy Inc (NASDAQ:MSTR) “at a Buy/High Risk.” The price target is based on the firm’s “forward 12-month rolling base-case Bitcoin forecast of $181k (63% upside from current levels)”. Citi believes that Strategy Inc’s (NASDAQ:MSTR) “net asset value (NAV) premium can range 25%-25%.”

The firm noted that while Strategy Inc (NASDAQ:MSTR) can offer strong returns on the upside, it can also lose a lot of value on the downside. This is especially because Strategy Inc (NASDAQ:MSTR) is “a Digital Asset Treasury (DAT) company making its stock a leveraged and more volatile play on Bitcoin.”

Citi pointed out that in 2020, Strategy Inc (NASDAQ:MSTR) became the first public company to “adopt Bitcoin as its primary treasury reserve asset.” The company now holds approximately 3% of all Bitcoin in circulation and plans to continue buying more Bitcoin by “issuing convertible debt, preferred equity, and MSTR stock.”

Strategy Inc (NASDAQ:MSTR) is an American company that has adopted Bitcoin as its primary treasury reserve asset. The company also provides advanced AI-powered enterprise analytics software.

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.