TD Cowen cuts The Smarter Web Company target to £0.64, keeps Buy rating
Analysts cited revised Bitcoin price forecasts, recent treasury activity and updated dilution assumptions, while the company's Q2 Bitcoin holdings rose to 2,878 BTC and the shares closed at £0.29 on July 17.
TD Cowen lowered its price target on The Smarter Web Company to £0.64 from £1 while maintaining a Buy rating, reflecting a more cautious Bitcoin price outlook, the company's recent treasury activity and the risk of dilution from potential future share issuance to fund additional Bitcoin purchases. The London Stock Exchange-listed company increased its Bitcoin holdings to 2,878 BTC in the second quarter from 2,699 BTC in the previous quarter. Shares closed up 2% at £0.29 on July 17, leaving the revised target above the current trading level. The move underscores both the upside analysts still see in the company's Bitcoin treasury strategy and the volatility and financing risks tied to balance-sheet accumulation of the token.
- price target: An analyst's projected future share price.
- dilution: A reduction in existing shareholders' ownership percentage when a company issues additional shares.
- treasury strategy: A company's approach to managing balance-sheet assets, including holding Bitcoin as a reserve asset.