TD Cowen Raises MSTR Stock Target To $400 Amid Bank of America Investment
Highlights
- TD Cowen raised its price target for MSTR to $400 and retained a buy rating.
- The analysts said that Bitcoin accumulation was better than expected.
- Meanwhile, Bank of America disclosed it increased its Strategy holdings to nearly 4 million shares worth about $664 million.
Investment bank TD Cowen renewed its focus on Strategy after it upgraded the price target for the MSTR stock to $400. The upgrade is attributed to its fast Bitcoin buildup and recent financing, which boosts the firm’s capital structure.
TD Cowen Analysts Bullish On MSTR Stock
Analysts Lance Vitanza and Jonnathan Navarre raised their price target on MSTR stock to $400 from $395. In the meantime, they affirmed a “Buy” rating. The adjustment stemmed from more strong treasury activity in the second quarter. It inclues the rate of Bitcoin purchases made with preferred equity funds.
For context, Strategy recently raised almost $2 billion in new funds. Out of this, most of the proceeds were used for its recent Bitcoin purchase, according to the analyst note. TD Cowen now expects Strategy to acquire a total of 100,000 BTC for the quarter.
The brokerage also updated its estimates for Strategy’s performance indicators related to Bitcoin in 2026. It upscaled BTC Yield forecast to 19.8% from 18.2%. Moreover, TD Cowen revised the full-year BTC Dollar Gain estimate to $15.16 billion from $13.89 billion.
A Look At Strategy’s Latest Achievements
Recently, Strategy revealed that it had more than 4% of the total bitcoin supply, or 843,738 BTC. The company bought an additional 24,869 BTC, worth approximately $2 billion this week, between May 11 and May 17. It was the biggest weekly acquisition since April.
TD Cowen also mentioned Strategy’s repurchase of around $1.5 billion of convertibles at a discount to face value. This initiative eliminated potential dilution and lessened refinancing pressure and credit quality, analysts said.
Separately, Bank of America revealed it acquired an additional 117,374 shares of Strategy worth about $19.6 million. The bank now has approximately 3.96 million MSTR shares worth about $664 million in its portfolio. It also indicates ongoing institutional buying of the Bitcoin-oriented company’s shares.
However, MSTR stock continued to drop. On Tuesday, May 19, the Strategy share price closed at $164.63, down by 1.20%.
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