MicroStrategy stock rallies on a super bullish analyst note

on Apr 8, 2024
  • Benchmark analyst sees upside in $MSTR to $1,875 per share.
  • Mark Palmer explained why in a research note on Monday.
  • MicroStrategy stock has already more than tripled year-to-date.

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MicroStrategy Inc (NASDAQ: MSTR) is up more than 10% on Monday after a Benchmark analyst issued a super bullish note in its favour.

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Why is Benchmark bullish on MicroStrategy stock?

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Mark Palmer reiterated his “buy” rating on the business intelligence company that owns close to a quarter-million Bitcoin and said its shares could climb to $1,875.

The analyst is positive on MicroStrategy stock as he expects the world’s largest cryptocurrency to hit $150,000 by the end of next year on the upcoming halving and recently approved Bitcoin ETFs.

While halving will create a supply shock, we believe the event’s impact could be magnified by concurrent demand shock created by the emergence of spot bitcoin exchange-traded funds.

Note that $MSTR is already more than tripled since its year-to-date low in late January.

$MSTR will continue to invest in Bitcoin (BTC)

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Mark Palmer is convinced that MicroStrategy Inc will continue to use cash from its enterprise software business to buy more Bitcoin.

At the end of 2025, he expects the Nasdaq-listed firm to be holding 298,246 BTC versus 214,246 at writing.

The Benchmark analyst agreed that MicroStrategy shares are currently trading at a premium but dubbed it justified considering due to the company’s “demonstrated ability to tap capital markets at attractive interest rates … and then using proceeds to purchase more BTC”.

Palmer remains bullish on $MSTR even though it reported a 6.1% decline in its fourth-quarter revenue to $124.5 million in February that came in below $132.9 million expected.

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