Bernstein sets $2,890 price target for MicroStrategy due to Bitcoin strategy

From Nasdaq: 2024-06-14 13:33:09

Bernstein initiates MicroStrategy coverage with a Buy rating and $2,890 price target. Analyst predicts Bitcoin to hit $200,000 by 2025 due to strong demand and limited supply, which benefits MicroStrategy as the largest corporate holder. The company’s aggressive Bitcoin strategy supports a premium stock valuation.

MicroStrategy increases convertible debt offering to $700 million from $500 million due to high investor demand, with an option for an additional $100 million. Notes carry a 2.25% annual interest rate and can be converted into cash or stock at $2,043.32 per share. Funds will be used to purchase more Bitcoin and for general corporate purposes.

Wall Street analysts have a Strong Buy consensus on MSTR stock with an average price target of $1,793 per share, indicating 21% upside potential. The stock has seen a 436% rally in the past year. MSTR aims to further leverage Bitcoin with the funds raised from the convertible debt offering.

Read more at Nasdaq: MicroStrategy (NASDAQ:MSTR) Lands $2,890 Price Target from Bernstein