MicroStrategy price target raised to $510 from $300 at Canaccord

Canaccord raised the firm’s price target on MicroStrategy (MSTR) to $510 from $300 and keeps a Buy rating on the shares. The firm says MicroStrategy is the best performing stock across the Fortune 500 since it implemented its bitcoin acquisition strategy in the summer of 2020, notching a gain of 2,800% over this period. The firm increased the price target after introducing a new MicroStrategy valuation framework. Traditional earnings metrics no longer really apply to MicroStrategy, given the company’s software business only accounts for a single-digit percentage of current enterprise value, the analyst tells investors in a research note. Canaccord says that using both equity and convertible debt while exploiting its equity premium, Microstrategy is able to increase its bitcoin holdings faster than its share count is being diluted.