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

Global investment bank TD Cowen has lowered its price target for Strategy (Nasdaq: MSTR) to $260 from $400, a reduction of approximately 35%, but maintained its buy rating, The Block reported. TD Cowen clarified that the downgrade stems from a revised forecast for BTC's price, not the "Digital Credit Capital Framework" announced yesterday. The bank reduced its year-end BTC price target to $100,000 from $140,000 and its end-of-2027 forecast to $135,000 from $190,000. While the $260 target may seem unrealistic, representing a more than 200% increase from yesterday's closing price of $92.68, TD Cowen stated it is maintaining its assumptions for Strategy's future BTC acquisitions and a three-times profit multiple. Strategy recently issued over 12 million common shares in the past week without purchasing additional BTC, restoring its dollar reserves to $2.55 billion. TD Cowen interpreted this move as a signal to the market that the company can cover its dividend and interest expenses even amid a prolonged BTC bear market.