Maxim Group Trims MSTR Price Target, Still Sees 120% Upside Potential
Maxim Group analyst Matthew Galinko has reaffirmed his Buy rating for Strategy (MSTR) despite lowering its 12-month price target from $250 to $215. This still implies a potential upside of around 120% if the stock reaches the new target, which is currently trading at approximately $97.
The adjustment in price target reflects ongoing volatility in the market, fluctuating Bitcoin prices, and the uncertainty associated with Strategy's business model, which amplifies the value of its shares relative to Bitcoin. Despite this, Maxim Group remains confident in Strategy's ability to drive long-term value through its Bitcoin accumulation strategy and legacy analytical software business.
One key development supporting the bull case is Strategy's expansion of its at-the-market equity offering capacity to $44.1 billion. This increased capacity allows the company to sell new shares directly into the open market, raising capital that will be used to purchase more Bitcoin. Under this strategy, Strategy aims to become an even larger corporate holder of Bitcoin.