Bitcoin-focused MicroStrategy inventory has 22% upside – analyst says

• TD Cowen analyst sees upside in MicroStrategy to $520.
• Lance Vitanza defined his bullish view in a analysis observe.
• MicroStrategy inventory has already tripled because the begin of 2023.

MicroStrategy Inc has already tripled because the begin of this 12 months however a TD Cowen analyst continues to see additional upside on this inventory.

MicroStrategy inventory may climb to $520

Lance Vitanza assumed protection of the software program firm right this moment with an “outperform” ranking and mentioned its shares may climb to $520 – up one other 22% from right here.

For institutional buyers, he mentioned in his analysis observe, MicroStrategy inventory is one of the simplest ways to realize publicity to Bitcoin.

MSTR makes use of all its retained earnings after which some to purchase and maintain BTC [that] displays a perception that Bitcoin will show a superior retailer of worth relative to metals and fiat currencies.

The Nasdaq-listed agency is about to report its Q2 earnings subsequent week. Consensus is for it to lose 71 cents a share versus an alarming $92.81 per share a 12 months in the past.

MSTR trumps BTC or a Bitcoin ETF

The Virginia-based firm presently owns greater than 150,000 Bitcoin in whole.

Vitanza recommends MicroStrategy inventory additionally as a result of it’s free from among the charges associated to investing immediately in Bitcoin or a Bitcoin ETF. He’s satisfied that its underlying enterprise serves as draw back safety as effectively.

We see MicroStrategy as a sexy automobile for buyers trying to acquire Bitcoin publicity.

MicroStrategy is lobbying for a change in accounting guidelines associated to BTC which can additionally enhance its financials. Bitcoin-specific catalysts, together with “halving” and approval of a spot bitcoin exchange-traded fund may also profit MSTR, the TD Cowen analyst concluded.