Bernstein raises price target on bitcoin proxy stock, predicts over 40% potential upside
According to Bernstein, MicroStrategy’s position in the bitcoin market could lead to further upside for the stock in the coming months. Analyst Gautam Chhugani, who has an outperform rating on the stock, has raised his price target to $600 from $290, indicating a 42.2% potential increase from the previous close. This increase comes in a year where the stock has already seen significant growth, with shares rising about 568% in 2024 and over 181% in the last three months. On Friday, shares saw a 6% increase as bitcoin approached $100,000. Chhugani believes that bitcoin is in a structural bull market with supportive regulation, government backing, institutional adoption, and favorable macroeconomic conditions. He also noted that MicroStrategy’s debt is long-term and unsecured, minimizing the risk to the company’s balance sheet liquidity from bitcoin volatility. MicroStrategy has been steadily accumulating bitcoin, now owning approximately 1.7% of the global supply. The analyst expects this figure to increase to 4% by 2033. Chhugani described MicroStrategy’s approach to bitcoin as unprecedented on Wall Street, attracting significant global capital for bitcoin investment. Following Chhugani’s update, shares rose by over 7% in premarket trading. Analyst opinions on the stock are mixed, with all nine analysts covering it recommending a buy or strong buy rating. However, the average target price of $326.29 suggests a downside of more than 22%.
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