MSTR stock plunges 60% as analysts slash targets but still call it a buy
Strategy Inc. has faced a steep decline in its mstr stock price, with analysts slashing their target valuations. The company, closely tied to bitcoin price’s performance, now trades at $157.33—almost 60% below its 52-week peak. Despite the drop, most analysts still recommend buying the stock.
Clear Street analysts recently cut their target price for Strategy Inc. from $443 to $268 per share. They warned that a fall below $150 could trigger further technical selling, pushing the mstr stock toward new lows. Yet, the firm kept a 'buy' rating, citing the company’s direct exposure to bitcoin price.
Other analysts have also adjusted their expectations. A recent report from Seitenwechsel noted that several major U.S. and European banks now place their targets in the low- to mid-$50 range. The exact figures and names of all analysts were not disclosed, but the shift reflects growing caution.
Of the 16 analysts covering Strategy Inc., 14 still rate it as a 'buy' or 'strong buy'. Clear Street’s Brian Dobson described the company as a 'leveraged play on bitcoin price,' meaning its stock often moves sharply with cryptocurrency prices. A rebound in bitcoin price could quickly lift Strategy Inc.’s share value.
The company’s next quarterly report will provide insight into how management is handling debt amid the market downturn. Meanwhile, MSCI’s decision not to exclude digital asset-linked firms from its global benchmarks removes the risk of forced selling for Strategy Inc.
Strategy Inc. now trades at $157.33, far below its 52-week high of $391.80. The stock’s performance remains heavily tied to bitcoin price’s movements, with analysts watching the $150 level closely. The upcoming earnings report will clarify how the company is managing financial pressures in a volatile market.
