S&P Global Ratings Touts Strategy Inc. (MSTR) Stable Outlook Asserts B-Issuer Credit Rating

Strategy Inc (NASDAQ:MSTR) is one of the best beaten down stocks to invest in according to analysts. On December 16, S&P Global Ratings reiterated a B- Issuer credit rating for Strategy Inc (NASDAQ:MSTR), citing the company’s stable outlook.

According to the ratings firm, the establishment of a US$ reserve is a credit positive that affirms the company’s ability to mitigate liquidity risks associated with funding preferred dividend and coupon payments. The reserve is expected to prefund payments for 12 to 24 months before the company defers payments or sells Bitcoin.

While the company has lost about 40% of its market value due to a decline in Bitcoin prices, it maintains strong access to capital markets. It raised $700 million in November through a euro-denominated preferred stock offering. It has also funded its nearly $1.5 billion in reserves through the issuance of common stock.

Meanwhile, on December 5, Cantor Fitzgerald analyst Brett Knoblauch reiterated an Overweight rating but cut the price target to $229 from $560. According to the research firm, fears about the company are overblown, as it is not under any obligation to sell Bitcoin. Likewise, the company has enough cash to fund dividends for 21 months, with Bitcoin valued at $60.7 billion.

Strategy Inc. (NASDAQ:MSTR) provides AI-powered enterprise analytics software for business intelligence. It also serves as a central Bitcoin treasury, holding significant amounts of the cryptocurrency and offering related financial products.

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.