Wall Street brokerage Canaccord has lowered its price target for Michael Saylor’s Strategy (NASDAQ: MSTR) as the company’s shares continue to face heavy selling pressure.
The firm reduced its MSTR stock price target from $163 to $130. The decision follows a prolonged decline that has pushed Strategy shares close to their lowest level in 52 weeks.
MSTR Stock Price Target Lowered
During the previous trading session, MSTR stock closed at $86.93. That placed it slightly above its 52-week low of $81.81 and around 77% below its price from one year earlier.
However, the stock later climbed 8.12% to $93.96 after Strategy announced its new Digital Asset Framework initiative.
Despite lowering its MSTR price target, Canaccord has not changed its long-term outlook on Bitcoin. The brokerage believes the cryptocurrency’s investment case remains supported by its limited supply and the continued adoption of blockchain technology.
According to the firm, Bitcoin is becoming more established within global financial markets. It is increasingly being viewed not only as a speculative asset but also as a potential long-term store of value.
Canaccord Remains Confident in Strategy’s Bitcoin Model
Canaccord also believes Strategy’s Bitcoin-focused business model can remain sustainable, provided that Bitcoin delivers moderate annual price appreciation.
However, recent market performance has failed to meet those expectations. Weakness in Bitcoin and Strategy shares has increased concerns about the company’s valuation and financial position.
The brokerage argued that neither Bitcoin nor Strategy’s business model appears fundamentally broken. Therefore, it believes a recovery could take place over the medium term as market sentiment changes.
Technical indicators also suggest that MSTR stock has entered oversold territory based on its Relative Strength Index. In addition, fair-value estimates indicate that the shares could currently be undervalued.
Canaccord is not the only firm to revise its outlook. TD Cowen also lowered its Strategy stock price target to $260.
Strategy Launches Digital Credit Capital Framework
The latest analyst downgrade follows several developments affecting Strategy’s financial position.
The company recently introduced its Digital Credit Capital Framework, which is designed to improve liquidity management and strengthen its ability to meet future financial obligations.
As part of the initiative, Strategy increased its U.S. dollar cash reserve to approximately $2.55 billion. The company estimates that this amount can cover around 17.4 months of expected dividend and interest payments.
The move also supports Strategy’s new policy of maintaining enough liquidity to cover at least 12 months of anticipated financial commitments.
Other Analysts Maintain Bullish MSTR Targets
While Canaccord and TD Cowen lowered their targets, other Wall Street firms remain more optimistic about MSTR stock.
Cantor Fitzgerald maintained its Overweight rating and kept its $212 price target unchanged. The firm cited confidence in Strategy’s liquidity management plan.
Benchmark also repeated its Buy rating and maintained a significantly higher price target of $570.
Although Strategy’s preferred shares have recently experienced downward pressure, Benchmark highlighted that the company continues to expand its Bitcoin holdings.
The wide range of analyst price targets reflects the uncertainty surrounding Strategy. Its future performance remains closely connected to Bitcoin prices, access to liquidity, and investor confidence in its digital asset strategy.
