TD Cowen Lowers Strategy’s Price Target Amid Stock Volatility
- TD Cowen analysts have reduced their price target for Strategy shares to $500, down from $535.
- Strategy’s stock recently traded around $188, marking a decline of about 24% over the past month.
- The company raised $1.44 billion to maintain a cash reserve for dividend payments on preferred shares.
- Strategy has issued $7.7 billion worth of preferred shares this year to support its Bitcoin holdings strategy.
- Year-to-date, Strategy’s stock price has fallen approximately 35%, while Bitcoin’s price decreased by about 2.5%.
TD Cowen analysts have adjusted Strategy’s earnings multiple from nine times to five times due to increased volatility and shareholder dilution concerns. The cash reserve is seen as a prudent measure to avoid selling Bitcoin holdings under financial stress.
Despite a lowered price target, Strategy remains positioned to leverage its capital-raising abilities and benefit from potential Bitcoin upside, as noted by other firms like Benchmark with higher future estimates.( Source )
