MSTR Stock Dropped as Canaccord Raises Target to $179 on Bullish Bitcoin Outlook
Strategy (NASDAQ: MSTR) stock dropped by 3.88% to $137 on September 8, despite Canaccord raising its target from $175 to $179 due to a bullish Bitcoin outlook.
The wealth manager overseeing nearly $115 billion in client assets expects the price of Bitcoin to rise by 20% over the next 12 months for MSTR to reach this target. This would put Strategy's net asset value at 1.2 times its Bitcoin holdings, according to Canaccord.
Strategy repurchased $176 million worth of STRC stock in an attempt to push it back to its par value of $100. However, STRC traded at $97.96, only gaining by 0.22%, and analysts are skeptical about it reaching the par value unless Strategy makes significant buybacks or Bitcoin experiences a massive gain.
The MSTR stock price is currently defending the support at the 20-week EMA of $124. If it remains above this level, the price could reach the 200-week EMA of $168 and potentially support a long-term bullish outlook.