Benchmark has reaffirmed its Buy recommendation on Strategy (NASDAQ:MSTR) and kept its price target at $705.00, the firm said, retaining a bullish valuation framework despite recent volatility in the stock.
Shares of Strategy are trading at $106.99 and have fallen 28.54% over the past week, positioning the stock close to its 52-week low of $104.17, according to InvestingPro data.
Valuation approach
Benchmark’s $705 price target is derived from a sum-of-the-parts analysis that projects components of the company’s value through year-end 2026. The three-part framework explicitly includes:
- the expected value of Strategy’s bitcoin holdings,
- a 10x multiple applied to Strategy’s fiscal year 2026 estimated bitcoin dollar gain, and
- the projected year-end 2026 value of the company’s software business.
Central to Benchmark’s continued positive view is the assumption that bitcoin will reach $225,000 by the end of 2026. That bitcoin price expectation is a key input to the firm’s sum-of-the-parts valuation and underpins the price target.
Recent financial results
Strategy reported a pronounced earnings shortfall for the fourth quarter of 2025. The company’s earnings per share (EPS) were -42.93 USD versus a forecast of 2.97 USD, representing a negative surprise of 1,545.45%.
On the revenue side, Strategy posted 123 million USD for the quarter, ahead of the expected 118.81 million USD, a 3.53% positive surprise. These figures point to a mixed quarterly performance: a material EPS miss paired with a modest revenue beat.
Analyst reaction to the results has not been described in detail in the available information. The report notes that earnings surprises of this scale commonly prompt reassessments, and that investors will likely monitor the company for further updates or strategic adjustments.
Context and implications
Benchmark’s reiteration of its Buy rating and the $705 price target reflects a valuation approach that places substantial weight on future bitcoin appreciation and on Strategy’s software business value as of the end of 2026. At the same time, the company’s recent quarterly earnings miss and the steep one-week share-price decline highlight near-term execution and market-sentiment challenges.