Benchmark keeps Buy on Strategy at $570 as TD Cowen cuts target to $260
Analyst views diverged after Strategy adopted a capital framework allowing limited Bitcoin sales, higher STRC dividends, reserve building and up to $2 billion of buybacks and repurchases.
Benchmark reiterated its Buy rating on Strategy and kept a 12-month price target of $570, while TD Cowen lowered its target to $260 from $400 but maintained a Buy rating and said it still backed Michael Saylor’s latest capital strategy. The differing calls followed Strategy’s board-approved Digital Credit Capital Framework, which authorizes up to $1.25 billion of Bitcoin sales, raises the STRC annual dividend rate to 12% effective July 1, supports reserve building, and allows up to $1 billion of Class A common-stock buybacks plus up to $1 billion of preferred-security repurchases. TD Cowen said its lower target reflected reduced Bitcoin price assumptions rather than a change in view on the company’s Bitcoin-linked treasury approach.
- Digital Credit Capital Framework: Strategy’s board-approved capital management plan covering reserves, dividends, debt service, buybacks, repurchases and limited Bitcoin sales.
- STRC: Strategy’s Variable Rate Series A Perpetual Stretch Preferred Stock, for which the annual dividend rate was raised to 12% effective July 1.
- price target: An analyst’s estimate of where a stock could trade over a specified period.