TD Cowen analyst Lance Vitanza has reaffirmed a bullish outlook on MSTR stock, issuing a Buy rating on September 8. His optimistic assessment stems from the company’s strategic management of its capital markets activities, particularly its preference for issuing preferred shares instead of common stock. This choice reflects a belief that MSTR’s common stock is undervalued relative to Bitcoin’s current price, signaling a calculated approach to leverage market demand for Bitcoin-backed financial instruments.
Vitanza emphasizes the strong demand for Bitcoin credit, which has empowered the company’s decision to issue preferred shares. With this strategy, MSTR successfully raised $68.2 million, allowing it to acquire an additional 525 bitcoins and secure $8 million in cash designated for future dividends. This dual enhancement of Bitcoin holdings and optimized capital structure positions MSTR as an attractive investment opportunity in the ever-evolving cryptocurrency landscape.
TipRanks, which tracks analyst performance, rates Vitanza as a 5-star analyst, boasting an impressive average return of 25.3% and a success rate of 54.21%. His expertise lies particularly within the Communication Services sector, where he covers a range of stocks including Liberty Media, Clear Channel Outdoor, and TKO Group Holdings.
In a related development, Benchmark Co. also expressed confidence in MSTR by reiterating a Buy rating on the same day, setting a price target of $705. This consensus among analysts further bolsters investor confidence in the potential of MSTR stock as a viable investment in the current market environment.
