TD Cowen lowered its price target for Strategy to $440, citing pressure on the outlook for yields at Bitcoin
Svmuu News: Investment bank TD Cowen has lowered its one-year price target for Bitcoin reserve company Strategy (formerly MicroStrategy) from $500 to $440, citing the dilutive effect of ongoing common and preferred stock issuances, which has weakened earnings per share (Bitcoin) forecasts.Analysts expect Strategy to increase its holdings of Bitcoin by approximately 155,000 coins in fiscal year 2026, higher than previous forecasts; however, a higher proportion of equity financing will dampen the growth rate of holdings per Bitcoin.TD Cowen noted that while short-term yields are under pressure, relevant metrics are expected to improve in fiscal year 2027 as Bitcoin prices rebound. The report also pointed out that Strategy has recently increased its purchases during the Bitcoin price pullback, with most of the proceeds from financing used to increase holdings of Bitcoin.Analysts remain relatively positive about its long-term value as an exposure vehicle to Bitcoin and believe that some of its preferred shares offer potential for both income and capital appreciation. Additionally, regarding index inclusion, MSCI has not yet removed Bitcoin reserve companies from its indices, which is viewed as a short-term positive, though uncertainty remains in the medium to long term. (The Block)
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