Strategy Inc. Maintains Analyst Favor Despite Sharp Price Target Reduction

Clear Street analysts have reaffirmed their buy recommendation for Strategy Inc. even as the company's stock has experienced a significant decline. In a recent research update, the firm's analyst Brian Dobson maintained a positive long-term view but executed a substantial cut to the price target, lowering it from $443 to $268 per share. With the stock last trading at $157.33, this revised target still implies a potential upside of approximately 70%.

The core investment thesis for Strategy remains intact, according to Clear Street's analysis. The company continues to be viewed as a direct and leveraged vehicle for Bitcoin exposure. However, the valuation models supporting the price target required adjustment. Dobson cited revised, lower assumptions for future Bitcoin price performance and achievable returns as the primary reasons for the target reduction.

He emphasized that no change has occurred in the company's operational strategy. The disconnect, in the analyst's view, is between the current market valuation and the long-term potential of Strategy's Bitcoin holdings. This perspective suggests the recent share price weakness represents a market overreaction.

Key trading metrics highlight the stock's current position:
* Last Close: $157.33 (Friday, January 9)
* 52-Week High: $391.80
* Decline from High: Nearly 60%
* 52-Week Low: $135.00, a level the shares are currently trading just above

Should investors sell immediately? Or is it worth buying Strategy?

Broad Institutional Support Persists

The overall sentiment from the analyst community provides notable context. Out of 16 market experts covering Strategy, a commanding 14—or roughly 87%—maintain either a Buy or Strong Buy rating. This widespread optimism indicates that institutional observers largely attribute the stock's recent losses to Bitcoin's inherent volatility rather than a fundamental flaw in the business model.

The shares received significant structural support in early January from index provider MSCI. Its decision not to exclude companies with digital asset exposures from its global indices removed the threat of forced selling by passive funds that track these benchmarks.

A Critical Technical Threshold

Market technicians are now watching the $150 level closely. A sustained break below the 52-week low of $135 could trigger further technical selling pressure. Conversely, a recovery in the price of Bitcoin—which recently tested the $90,000 mark—would likely provide immediate upward momentum for Strategy shares, given the high correlation between the two assets. Investors are also awaiting the next quarterly report for insights into how management is navigating leverage ratios in the current market environment.