TD Cowen raised its price target on The Smarter Web Company to £0.73 ($0.99) from £0.64 ($0.87) and kept its Buy rating, pointing to the bitcoin treasury firm's proposed "MORE" perpetual preferred-share offering as a new source of long-term capital. The bank's target implies roughly 90% upside from Monday's trading level.
TD Cowen raised its price target on The Smarter Web Company to £0.73 ($0.99) from £0.64 ($0.87) and kept its Buy rating. Analysts led by Lance Vitanza said the company's proposed perpetual preferred-share offering, reserved under the ticker MORE, would widen its capital-markets toolkit.
Shares trade well below the new target
Smarter Web shares traded at £0.385 ($0.52) on Monday, up 1.32% from Friday's £0.38 ($0.51) close, according to London Stock Exchange data. TD Cowen's revised target implies about 90% upside from that level. According to The Block: "we view the initiative as evidence of increasing sophistication across the bitcoin treasury ecosystem", the analysts wrote.
The MORE preferred structure
The MORE shares are expected to carry a cumulative variable-rate dividend paid weekly, along with a liquidation preference and redemption rights, but no shareholder voting rights. Smarter Web is targeting between £15 million and £25 million in gross proceeds, with a minimum £10 million fundraising condition. The offering still needs shareholder approval and Financial Conduct Authority approval of a prospectus, and a general meeting on Sept. 28 will put the required share-class changes to a shareholder vote.
Treasury yield held up despite a forced sale
TD Cowen also flagged Smarter Web's treasury performance. The company generated about 11.5% year-to-date BTC Yield through Sept. 2, despite a roughly 420 basis point headwind from the July 23 repayment of its TOBAM convert, which required the sale of about 178 bitcoin. Smarter Web currently holds 2,747 BTC on its balance sheet, making it the only scaled bitcoin treasury vehicle accessible to UK institutional investors.
Bitcoin was approaching $78,000 on Monday, about 38% below its all-time high near $126,000.
TD Cowen's base case puts bitcoin at about $100,000 by December, with an upside case of $175,000 and a downside case of $25,000. The bank also expects Smarter Web's acquisition activity to gradually return to its fiscal 2025 pace.
Sources: The Block, Crypto Briefing, crypto.news
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