This is why Citi Cut Strategy Inc. (MSTR) Price Target But Asserted Buy Rating

Strategy Inc. (NASDAQ:MSTR) is one of the best beaten-down technology stocks to buy now. On July 1, Citi cut its price target of Strategy Inc. (NASDAQ:MSTR) to $136 from $260 while reiterating a Buy rating. Despite the cut, the new price target represents significant upside potential as the stock is trading at about $93 a share.

This is why Citi Cut Strategy Inc. (MSTR) Price Target But Asserted Buy Rating as a Beaten Down technology Stock

Source: Unsplash

The price target cut followed Citi’s 27% revision of its 12-month Bitcoin forecast to about $81,800. The $136 price target assumes a 40% contribution from a high Bitcoin price over the next 12 months. The flagship cryptocurrency has been under pressure, tanking to about $61,593 a coin. The research firm has also lowered its adjusted Bitcoin yield estimates for fiscal 2026 and 2027 from 10.4% and 10.5% to 2.6% and 3.5%, respectively.

Strategy Inc. has already issued $1.15 billion in shares, thereby lifting its USD reserve to $2.55 billion from $1.4 billion. The $2.55 billion reserve is expected to cover 17.4 months of dividends.

Strategy Inc. (NASDAQ:MSTR) is a corporate Bitcoin treasury company and enterprise software vendor. It primarily issues debt and equity to accumulate Bitcoin as its core reserve asset while also selling cloud-native, AI-powered business intelligence (BI) software.

While we acknowledge the risk and potential of MSTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MSTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Dividend Stocks Yielding at Least 5% to Buy According to Hedge Funds and Top 10 Stocks to Buy According to Ariel Investments.

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