In a research note on Friday, brokerage BTIG said MicroStrategy has a strong track record of creating shareholder value and reiterated its buy rating on the stock, also raising its price target from $780 to $1,800.
MicroStrategy shares have risen 155% so far this year, driven by a 50% rise in the price of Bitcoin, increasing financing, and the implied premium for MicroStrategy's Bitcoin holdings, which has risen from about 1.5 times last year to more than two times, analysts Andrew Harte and Thomas Smith wrote.
In the company's sum-of-the-parts (SOTP) valuation analysis, investors supported a higher implied Bitcoin premium, the report said, noting that while the premium is elevated compared to historical levels, "investors have shown a willingness to invest in favor of the premium." (CoinDesk)