American business intelligence company MicroStrategy stock has received an overweight rating from Cantor Fitzgerald on Wednesday, suggesting that the company is a good investment opportunity. The analysts also gave a higher price target for MSTR stock.
Bitcoin Investment Firm MicroStrategy Receives Buy Rating
Cantor Fitzgerald analyst Brett Knoblauch initiates coverage on MicroStrategy (NASDAQ: MSTR) on August 21. MicroStrategy stock has received an “overweight” rating from Cantor Fitzgerald analyst Knoblauch. The rating comes in response to the increasing demand for Bitcoin and traditional finance firms’ entry into the crypto market.
The analyst also set a price target of $194, indicating a positive outlook on the stock based on the recent market performance. The MSTR shares are expected to outperform the market.
MicroStrategy stock price closed 1.23% lower at $133.69 on Tuesday. MSTR price is trading 2.64% up at $137.21 on Wednesday. The MSTR stock price has recorded more than 100% gains year-to-date.
The company recently announced a plan to raise as much as $2 billion to buy more bitcoins. The company to raise these funds by selling MSTR class A shares. It currently holds 226,500 Bitcoin worth nearly $14 billion, depending on market fluctuations.
The company saw losses in the second quarter results due to impairment losses of $180.1 million. The earnings per share and revenue also missed expectations. Still, the Bitcoin development company plans to continue buying bitcoins aggressively in this quarter.
Brokerage firm Bernstein also gave an outperform rating to MicroStrategy stock, claiming that the stock can double in value by the end of 2025.
Bitcoin Price to Rally On MSTR Demand?
Bitcoin accumulation by MicroStrategy is considered a bullish indicator by crypto investors as the company is the largest corporate Bitcoin holder. The BTC price typically shows upside momentum immediately after the company or its executive chairman Michael Saylor announces a new development. Notably, the upcoming $2 billion proceeds to buy more bitcoins could push BTC prices upwards towards $70,000.
Recently, the U.S. Securities and Exchange Commission approved the launch of MSTX 1.5% and 1.75% leverage ETFs by Defiance Investments. These are the first among leveraged single-stock ETFs targeting MicroStrategy.
BTC price fell more than 2% in the past 24 hours, with the price currently trading at $59,361. The 24-hour low and high are $58,610 and $60,976, respectively. Furthermore, the trading volume has decreased by 4% in the last 24 hours, indicating a decline in interest among traders.
Despite the drop in prices, analysts are largely bullish on the upcoming Bitcoin rally. K33 Research predicted an upcoming “short squeeze” triggering a sharp rally in BTC price.
Varinder Singh
Varinder has 10 years of experience in the Fintech sector, with over 5 years dedicated to blockchain, crypto, and Web3 developments. Being a technology enthusiast and analytical thinker, he has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers. With CoinGape Media, Varinder believes in the huge potential of these innovative future technologies. He is currently covering all the latest updates and developments in the crypto industry.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
