Analyst keeps ‘Buy’ on Saylor's Strategy after strong Q3 run

Core Viewpoint - H.C. Wainwright analyst Mike Colonnese maintains a "Buy" rating on MicroStrategy (MSTR) following strong third-quarter results, despite lowering the price target from $521 to $475, a decrease of 8.83% [1] Financial Performance - MicroStrategy reported strong financial performance in the third quarter, with notable net income and full-year guidance for Bitcoin (BTC) holdings [1] - The company is expected to expand its Bitcoin purchases in the fourth quarter, supported by additional preferred equity sales [2] Market Valuation - MSTR is currently trading at approximately 1.3 times its market net asset value (mNAV), representing a 35% discount to its historical average, indicating it is undervalued [2] S&P 500 Inclusion - MicroStrategy narrowly missed inclusion in the S&P 500 during the September rebalance, but now meets all criteria for inclusion, which could act as a major catalyst for the stock [3][4] - S&P Global Ratings assigned MicroStrategy a "B-" issuer credit rating, indicating higher credit risk, but maintained a stable outlook [4] Future Outlook - Analysts expect higher Bitcoin prices, improved capital access, and potential S&P 500 inclusion to drive further upside for MicroStrategy's shares [5] - Other analysts have also revised their outlooks on MSTR, maintaining bullish ratings while adjusting price targets downward [6][7]