Bitcoin-focused MicroStrategy stock has 22% upside – analyst says

TD Cowen analyst sees upside in MicroStrategy to $520.
Lance Vitanza explained his bullish view in a research note.
MicroStrategy stock has already tripled since the start of 2023.

MicroStrategy Inc has already tripled since the start of this year but a TD Cowen analyst continues to see further upside in this stock.

MicroStrategy stock could climb to $520

Lance Vitanza assumed coverage of the software company today with an “outperform” rating and said its shares could climb to $520 – up another 22% from here.

For institutional investors, he said in his research note, MicroStrategy stock is the best way to gain exposure to Bitcoin.

MSTR uses all its retained earnings and then some to buy and hold BTC [that] reflects a belief that Bitcoin will prove a superior store of value relative to metals and fiat currencies.

The Nasdaq-listed firm is set to report its Q2 earnings next week. Consensus is for it to lose 71 cents a share versus an alarming $92.81 per share a year ago.

MSTR trumps BTC or a Bitcoin ETF

The Virginia-based company currently owns more than 150,000 Bitcoin in total.

Vitanza recommends MicroStrategy stock also because it’s free from some of the fees related to investing directly in Bitcoin or a Bitcoin ETF. He’s convinced that its underlying business serves as downside protection as well.

We see MicroStrategy as an attractive vehicle for investors looking to gain Bitcoin exposure.

MicroStrategy is lobbying for a change in accounting rules related to BTC which may also boost its financials. Bitcoin-specific catalysts, including “halving” and approval of a spot bitcoin exchange-traded fund will also benefit MSTR, the TD Cowen analyst concluded.