Cantor slashes Strategy target by 60%, tells clients forced-sale fears are overblown
Cantor Fitzgerald cut its 12-month price target for Strategy stock by 60% but maintained a "buy" rating, dismissing forced liquidation concerns.Summary
Cantor Fitzgerald has significantly reduced its 12-month price target for Michael Saylor's Bitcoin-heavy company, Strategy (MSTR), by 60%, lowering it from $560 to $229. Despite this downgrade, the firm maintained its "buy" rating, asserting that fears regarding forced liquidations of Strategy's Bitcoin holdings are "not warranted." Cantor analysts cited that Strategy has sufficient cash reserves to fund dividends for 21 months and could raise more capital through equity facilities if necessary, stating that forced selling is only a risk absent a 90% pullback in BTC prices.
Short-term risks remain, notably the MSCI Index potentially removing companies with over 50% of assets in digital holdings, which could trigger forced selling. However, Cantor views this as a manageable "near-term flow headwind."
Overall, Cantor remains bullish on Strategy and Bitcoin's long-term trajectory, calling the current market pullback "healthy." They reiterated their belief that Bitcoin is on track to eclipse gold's market capitalization, which would require Bitcoin to reach approximately $1,577,860.
(Source：Cointelegraph)