Cantor Fitzgerald sharply cuts Strategy's target price by 60%

Uk Jin

Summary

Cantor Fitzgerald said it has sharply lowered Strategy's 12-month target price from 560 dollars to 229 dollars, a 60% reduction.
Strategy's stock is heavily affected by Bitcoin price movements, and the recent stock decline has continued.
Cantor maintained a buy rating while saying Strategy has long-term growth potential based on Bitcoin's strength.

Wall Street's view toward Strategy (formerly MicroStrategy), the publicly listed company with the largest Bitcoin (BTC) holdings, is turning cold.

On the 5th (KST), according to The Street, investment bank Cantor Fitzgerald lowered Strategy's 12-month target price from 560 dollars to 229 dollars. This reflects a 28% decline in the stock over the past month and a 32% drop year-to-date. Strategy's stock is currently at 186 dollars, well below the target price.

Cantor explained, "Because Strategy holds 650,000 bitcoins, its share price is affected by Bitcoin's price fluctuations," adding, "As Bitcoin's price falls, Strategy's stock is trading like a 'leveraged alternative asset' to Bitcoin."

However, Cantor maintained a 'buy' rating on Strategy. Cantor said, "There is no situation requiring Strategy to dispose of its Bitcoin holdings, and the risk is not large unless Bitcoin's price falls by 90% from its current level," and assessed, "Strategy is a company with long-term growth potential based on Bitcoin's strength."

Meanwhile, Strategy is facing concerns about the possibility of being removed from the MSCI USA Index.

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