Citi raised its price target for MicroStrategy to $240 from $136 and maintained a Buy rating. The analyst’s more bullish Bitcoin outlook drove the increase. MicroStrategy shares rose 2.7% in premarket trading.
Citi’s new model forecasts Bitcoin will reach approximately $113,400 within the next 12 months, nearly 40% above its previous forecast.
Citi’s valuation attributes about 34% of MicroStrategy’s potential upside to appreciation in its underlying Bitcoin holdings. Another 16% is tied to expansion of the stock’s multiple to net asset value (mNAV).