Analyst Predicts 27.29% Upside for MicroStrategy Stock

Stock Surge Ahead? Analyst predicts a 27.29% upside for MicroStrategy as Keefe, Bruyette & Woods initiates coverage with an Outperform rating. This recommendation, along with significant institutional buying, could positively influence stock prices in the near future.

Date: 08-02-2025

AI Rating: 7

Positive Analyst Rating
Keefe, Bruyette & Woods' initiation of coverage with an 'Outperform' recommendation typically signals confidence in the stock's potential for growth, which can bolster investor sentiment.

Price Target Implication
The average one-year price target of €405.15 represents a 27.29% upside from the closing price of €318.30. This substantial increase could lead to buying activity as investors look to capitalize on the predicted growth.

Earnings Per Share (EPS)
The reported projected annual non-GAAP EPS is 22.64. A strong EPS figure often suggests solid profitability and can positively influence stock price as it reflects the company's ability to generate earnings relative to its share count.

Growing Institutional Ownership
There has been a notable increase in institutional investments, with 1,234 funds reporting positions in MicroStrategy, an 18.88% increase in the last quarter. This surge in institutional ownership can be a positive indicator as it reflects increased confidence from large investors.

Fund Ownership Dynamics
Several notable institutions have increased their holdings significantly. For example, Capital International Investors increased its share count by 90.16%, indicating growing confidence and potential support for the stock's price. In contrast, AGTHX - GROWTH FUND OF AMERICA decreased their holding by 21.60%, which may reflect a strategic shift in their investment approach.

This analysis suggests that the combination of an optimistic analyst rating, significant institutional backing, and strong projected earnings are likely to have a favorable impact on MicroStrategy's stock price in the near future.

Stocks: MSTR