TD Cowen lowers Strategy target price to $260, maintains buy rating

TD Cowen has lowered its Strategy target price from $400 to $260, maintaining a buy rating and evaluating its digital credit capital framework as positive for credit visibility and capital flexibility. The downward adjustment of the target price is due to the adjustment of Bitcoin price expectations, which are expected to decrease from $140000 to $100000 by the end of 2026 and from $190000 to $135000 by the end of 2027. The target price of $260 implies more than 200% upward potential compared to the closing price of $92.68 on Monday in Strategy. Strategy's US dollar reserves have been rebuilt to $2.55 billion, with over 12 million common shares issued. The company has been approved for a maximum of $1 billion in preferred stock buybacks and $1 billion in common stock buybacks, with a Bitcoin monetization plan cap of $1.25 billion. The dividend yield of STRC preferred stock has been raised from 11.5% to 12%, aiming to stabilize its trading price close to the face value of $100.