Bullish Analysts Just Can’t Quit Strategy Shares After 60% Rout

Core Viewpoint - Wall Street analysts remain largely bullish on Strategy Inc., despite a significant 60% decline that resulted in a loss of $73 billion in value, with 15 out of 19 analysts maintaining buy ratings and a median price target suggesting a potential rise of over 150% in the next year [1] Group 1: Analyst Ratings and Price Targets - Only three analysts have turned bearish on Strategy Inc. following the stock's decline, while the majority still hold buy ratings [1] - The median price target from 12 analysts indicates a potential increase to approximately $485 from a recent close of about $189 [1] - Price targets vary significantly, with the lowest at $425 and the highest at $705, suggesting a nearly fourfold increase [2] Group 2: Market Sentiment and Cryptocurrency Influence - The bullish sentiment is based on the expectation that Bitcoin will recover from its recent downturn, similar to past recoveries in 2017 and 2022, which would enhance the value of Strategy's Bitcoin holdings [3] - The analysis of Strategy's value does not rely on traditional financial metrics but rather on the anticipated price movements of Bitcoin, a highly volatile asset [4] Group 3: Historical Performance and Premium Valuation - Strategy Inc. has experienced significant stock price increases, notably a 600% rise in the six months following its Bitcoin purchase announcement in August 2020, reflecting investor confidence and a premium valuation over Bitcoin's price [6] - At its peak, the premium for Strategy's shares over Bitcoin reached more than 2.5 times, indicating strong market support for the company's crypto strategy [6]