Citi Starts Coverage of Strategy (MSTR) with a Buy Rating

Strategy Inc (NASDAQ:MSTR) is one of the 10 Best American AI Stocks to Buy According to Analysts. On October 21, Citi initiated coverage of Strategy Inc (NASDAQ:MSTR), giving the stock a Buy rating and setting the price target at $485.

Citi initiated coverage of Strategy Inc (NASDAQ:MSTR) “at a Buy/High Risk.” The price target is based on the firm’s “forward 12-month rolling base-case Bitcoin forecast of $181k (63% upside from current levels)”. Citi believes that Strategy Inc’s (NASDAQ:MSTR) “net asset value (NAV) premium can range 25%-25%.”

Citi Starts Coverage of Strategy (MSTR) with a Buy Rating

The firm noted that while Strategy Inc (NASDAQ:MSTR) can offer strong returns on the upside, it can also lose a lot of value on the downside. This is especially because Strategy Inc (NASDAQ:MSTR) is “a Digital Asset Treasury (DAT) company making its stock a leveraged and more volatile play on Bitcoin.”

Citi pointed out that in 2020, Strategy Inc (NASDAQ:MSTR) became the first public company to “adopt Bitcoin as its primary treasury reserve asset.” The company now holds approximately 3% of all Bitcoin in circulation and plans to continue buying more Bitcoin by “issuing convertible debt, preferred equity, and MSTR stock.”

Strategy Inc (NASDAQ:MSTR) is an American company that has adopted Bitcoin as its primary treasury reserve asset. The company also provides advanced AI-powered enterprise analytics software.

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Disclosure: None. This article is originally published at Insider Monkey.