MSTR Stock Poised for Rally to $185 as Strategy's STRC Hits 15-Week High

The price of Strategy's STRC preferred stock has reached its highest value since June 1, sparking bullish forecasts for MSTR stock. The analyst notes that if STRC can get back to its par value of $100 or trade above it, Strategy will gain access to a 'much larger preferred equity machine' that could raise more capital and boost MSTR's price.

The same analyst believes that a conservative 1.5x management NAV (mNAV) would put MSTR around $185 based on today's NAV, before accounting for additional Bitcoin Strategy could accumulate if STRC becomes a reliable capital-raising machine.

This outlook comes after Canaccord increased its MSTR stock target from $175 to $179 due to optimism about Bitcoin's price recovery. However, the rising odds of the Federal Reserve hiking interest rates at the September 16 FOMC meeting have caused volatility in MSTR stock, which has tested resistance at the 200-day SMA of $138.