MSTR Stock Soars 7% As $4B Investment Bank Upgrades Price Target To $200
Highlights
- The Strategy stock gained over 7% in the intraday trading session today.
- The gains follow an upgraded stock price target by B. Riley Financial.
- Recently, the company has continued buying Bitcoin with a $255 million acquisition this week.
Michael Saylor’s Strategy Inc. (NASDAQ:MSTR) shares surged today. The MSTR stock rally comes following an increase in the price target of the stock by investment bank B. Riley Financial.
MSTR Stock Price Surges Amid Upgraded Target
B. Riley Financial, which boasts an AUM of $4 billion, upgraded the MSTR stock price target to $200 compared to target $188 previously. In addition, the bank maintained a ‘Buy’ rating for Strategy. The upgrade follows the ongoing momentum in the equity and credit-linked approach of the company based on digital assets.
According to market data, MSTR stock closed at $165.45, gaining $7.26 (4.59%) on Thursday, April 30. In addition, the Strategy share price increased significantly in the pre-market trading session on Friday.
The positive sentiment continued as the market opened. On Friday, May 1, the MSTR stock soared 7.22% to 177.40 at the time of writing in the intraday trading session. It’s in line with analyst expectations, who noted that MSTR must hold above $170 for further upside.
The new outlook of the brokerage is higher multiple on the revised net asset value (mNAV), which was raised to 1.5x, previously it was 1.4x. Analysts attribute this change to the recent price strength and capital-raising activity which is considered to be accretive.
Recently, Canada’s Alberta Investment Management Corporation poured in a whopping $219 million into Strategy’s stock. In addition, Capital Group also bought $747 million worth of MSTR shares in April.
About STRC & Continued Bitcoin Accumulation
One of the main motivators of the optimism has been the continued issuance of preferred securities by Strategy. The company has issued $3.4 billion worth of STRC preferred stock this quarter with a yield of 11.5% per annum. This structure has attracted investors who want to have a yield-generating instrument that is associated with digital asset strategies.
Also, stock sentiment in the market has been on the upswing over the past few weeks. The MSTR stock has surged nearly 43% since the last month.
In addition, Strategy recently announced an acquisition of $255 million Bitcoin this week. Earlier, last week, it acquired BTC worth 2.54 billion via proceeds from its preferred equity sale. It holds over 818,000 BTC currently, according on-chain crypto tools.
Meanwhile, it’s worth noting that on May 5 the company will publish its Q1 2026 earnings. The MSTR stock price could directly react to this release in case of an earnings beat or miss.
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