Strategy Inc (NASDAQ:MSTR) shares are under pressure on Wednesday after Canaccord Genuity delivered a major cut to its price target. Here’s what you should know.
- Strategy stock is testing key support levels. What’s behind MSTR weakness?
Canaccord Slashes MSTR Target
Canaccord analyst Joseph Vafi dropped Strategy’s price target from $474 to $185 while still keeping a Buy rating in place. He reiterated his bullish stance, but reduced the target by roughly 60%, a sharp reset that comes as the stock trades near its lowest levels since September 2024, Barron’s reported.
Even with the steep sell-off, Canaccord remains optimistic about the company’s long‑term setup. Strategy is the largest corporate holder of Bitcoin (CRYPTO: BTC), with 713,502 coins valued at about $53.6 billion.
Why Maintain A Buy Rating?
According to Vafi, Strategy’s massive Bitcoin holdings far outweigh its $8 billion in convertible debt, and preferred dividends can be covered through relatively small share sales. He argues that Bitcoin has been mispriced as a risk asset rather than a store of value, and that momentum‑driven selling may be nearing exhaustion.
“Bitcoin remains a compelling store of value,” Vafi wrote, noting its scarcity and verifiability.
Canaccord expects Bitcoin prices to rebound roughly 20% in 2026, though the timing remains uncertain. The firm also sees Strategy eventually trading at a 1.25x multiple to its underlying Bitcoin assets — up from the current 1.06x.
Strategy is set to report fourth‑quarter earnings on Thursday, which could be driving some of the volatility in shares this week.
What Do Other Analysts Think?
Strategy has recently seen a downward trend in its target price according to various analysts. Similarly to Canaccord Genuity’s rating, Mizuho also maintained an Outperform rating but adjusted its target down from $484.00 to $403.00 on Jan. 16.
Additionally, TD Cowen confirmed a Buy rating on Strategy, but lowered its target from $500.00 to $440.00 on Jan .15. In December, Citigroup also maintained a Buy rating, but decreased its target from $485.00 to $325.00. On Dec. 8, Bernstein kept an Outperform rating on shares but reduced its target from $600.00 to $450.00.
MSTR Price Action: Strategy shares were down 8.83% at $121.55 at the time of publication on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro.
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