Strategy Rebounds As BlackRock Boosts Stake, Keefe Bruyette Initiates ‘Outperform’ Rating But Retail Isn’t Impressed

The stock’s gains on Friday follow a sharp 3.3% decline in the previous trading session after the company reported fourth-quarter earnings that fell significantly short of Wall Street expectations.

Strategy (MSTR) jumped nearly 5% in morning trade on Friday after BlackRock disclosed an increased stake in the company and Keefe Bruyette initiated coverage with a bullish rating.

A recent Schedule 13G filing revealed that BlackRock (BLK) has raised its stake in Strategy to 5%, equivalent to approximately 11.2 million shares. 

This represents an increase from its 4.09% ownership as of September 30, 2024, according to Yahoo Finance.

Meanwhile, Keefe Bruyette initiated coverage on Strategy with an ‘Outperform’ rating and a $560 price target, implying a 66.3% upside from current levels, according to TheFly.

The brokerage considers Strategy an “attractive proxy” for investors seeking leveraged Bitcoin (BTC) exposure, highlighting the company’s ability to generate additional returns through accretive Bitcoin purchases. It also noted the company’s “highly demanded security issuances and a valuation that exceeds net asset value.”

On Stocktwits, retail sentiment remained ‘bearish’ accompanied by ‘high’  levels of chatter as a few expressed optimism. 

One user commented that there are many positive catalysts playing in Strategy’s favor, which is why they will continue to hold onto the stock long-term. 

Another quipped that if the stock is good enough for Blackrock, it’s good enough for them.

The stock’s recent gains follow a sharp 3.3% decline on Thursday after the company reported fourth-quarter earnings that fell significantly short of Wall Street expectations.

Despite recent volatility, Strategy’s stock has surged 559% over the past year and remains up more than 8% year-to-date.

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