Canaccord Lowers MSTR Price Target Amid Changed Market Sentiment

Canaccord Genuity has lowered its price target for Strategy's (NASDAQ:MSTR) stock from $163 to $130 while maintaining a Buy rating, citing unchanged fundamental value in Bitcoin.

The firm emphasized that despite recent market conditions, the scarcity and store-of-value proposition of Bitcoin remains intact. Supply and demand dynamics for Bitcoin remain attractive, with blockchain technologies providing a tailwind. According to Canaccord, Strategy's bitcoin acquisition engine is still attractive if Bitcoin appreciates modestly over time.

Strategy has taken steps to address liquidity concerns by increasing its USD Reserve to approximately $2.55 billion and implementing a new policy requiring at least 12 months of expected coverage.