TD Cowen cuts Smarter Web price target 36%

TD Cowen lowered The Smarter Web Company PLC's price target by 36% to £0.64 from £1.00 and reaffirmed a Buy rating. Smarter Web shares were trading at £0.287 on the London Stock Exchange, giving the £0.64 target about 123% upside.

Analysts led by Lance Vitanza adjusted bitcoin forecasts and updated projections for the company's treasury activity and dilution. The firm's valuation assigns £63 million to treasury operations and values projected year-end 2026 bitcoin holdings at £229 million.

After subtracting projected net debt of £18 million, TD Cowen derived a target equity value of £274 million, equivalent to £0.64 per share on 426 million fully diluted shares.

TD Cowen's base case assumes bitcoin reaches roughly $140,000 by December 2026, about 15% above the prior all-time high. The bank expects bitcoin acquisition to gradually return to the pace seen in fiscal 2025 and says Smarter Web could increase bitcoin holdings per fully diluted share in a favorable price environment.

Smarter Web most recently disclosed holdings of 2,878 BTC. The analysts highlighted the company's GBP-denominated offerings as an advantage for investors in the UK and described Smarter Web as a public bitcoin treasury company focused on accumulating bitcoin and raising holdings on a per-share basis through equity, debt and other financing tools.

The note also referenced the appointment of Oliver Hewett as chief financial officer and cited his background in institutional investment banking, financial strategy, governance, regulatory compliance and corporate finance.

The analysts wrote: ‘We believe the company has established itself as the clear leader among public bitcoin treasury companies (PBTCs) operating in the UK and believe its GBP-denominated offerings create a distinct competitive advantage with respect to investors living in the UK and/or transacting primarily in pounds sterling.'