Strategy (MSTR), a software firm, remains one of the most compelling stock-based ways to gain exposure to Bitcoin, according to Clear Street analyst Brian Dobson. Dobson reiterated a Buy rating on the stock but cut his price target to $268 from $443. The new price target still indicates about 70% upside from current levels. He said the reduction reflects lower Bitcoin price and treasury yield assumptions used in his valuation, not a change in his positive view about the stock.
The analyst said Strategy continues to stand out as a stock that offers direct and leveraged exposure to Bitcoin. Even after dilution, he believes it remains one of the most effective ways for equity investors to benefit if Bitcoin prices rise.
He also pointed to a recent MSCI decision as an important positive. By keeping digital-asset treasury companies in its major indexes, MSCI has reduced the risk of forced selling by index funds. Dobson said this removes a key source of uncertainty and improves visibility for institutional investors.
In addition, the analyst noted that potential S&P 500 (SPX) inclusion remains a source of upside. While not guaranteed, he said such a move could drive incremental demand for Strategy shares.
On valuation, Dobson said the stock is trading close to its modified net asset value (mNAV), which helps limit downside risk. At current levels, he views the shares as offering a “compelling entry point” for long-term investors.
On TipRanks, Strategy stock commands a Strong Buy consensus rating based on 12 Buys and two Hold ratings. The average Strategy price target of $453.17 implies an impressive 188% upside potential from current levels. Meanwhile, MSTR shares have lost 52% over the past year.
