Cantor Fitzgerald Cuts Strategy 12‑Month Target 59% to $229, Keeps Overweight
Investment bank Cantor Fitzgerald lowered its 12‑month price target for Strategy stock to $229, a 59% cut from the prior $560 target, while reiterating an "overweight" (buy) rating. Analysts now model Strategy raising $7.8 billion from capital markets over the next year, down from a prior projection of $22.5 billion. The firm’s adjustment reflects materially reduced expectations for Strategy’s near‑term fundraising and capital‑raising capacity. No additional operational details or new guidance from Strategy were reported. The note is an analyst valuation update intended for investors and traders, not company guidance.
Bearish
A large analyst downgrade of target price (‑59%) combined with a sharply reduced expected capital raise (from $22.5B to $7.8B) signals weaker near‑term fundamentals and lower upside expectations for Strategy. For traders, this can translate into increased selling pressure, wider bid‑ask spreads and heightened volatility around the stock and any related tokens or securities tied to the company. Historically, large cuts in price targets—even when ratings are maintained—tend to be followed by short‑term price declines as market participants update positions. In the medium term, the impact depends on whether Strategy can demonstrate alternative funding sources or improved operational performance; absent such signals, investor confidence and liquidity may remain constrained. Overall expect short‑term bearish price action and higher volatility; longer‑term outlook remains contingent on company fundraising and execution.