Canaccord Genuity Lowers Strategy Stock Price Target to $130

Canaccord Genuity lowered its price target on Strategy's (MSTR) stock to $130 from $163 while maintaining a Buy rating. The current price is $86.93, down 77% over the past year.

The firm stated that despite recent market conditions, the fundamentals remain intact. Bitcoin's value proposition as an increasingly scarce store of digital value has not changed since last year. Supply and demand dynamics for bitcoin are attractive, and the proliferation of blockchain technologies provides a tailwind.

The company's bitcoin acquisition engine remains attractive assuming modest appreciation per year. However, recent performance has not met this threshold. The firm believes that there is nothing broken in either Strategy's model or bitcoin, suggesting a pendulum swing back to the upside makes sense sometime over the medium term.