Drexel Hamilton Maintains Sell, $90 Target on MicroStrategy

Drexel Hamilton reiterates its Sell rating and $90 target price on MicroStrategy (NASDAQ: MSTR) as 4Q11 results reveal expenses remaining high on moderating top-line growth. Drexel Hamilton says, "In the most recent Form 10-Q, the company indicated that sales and marketing expenses may moderate as the pace of hiring is expected to slow, but the company indicated that it plans to continue hiring R&D personnel as it builds out is cloud offering. We think the recent deterioration of the bottom line coupled with planned future investments may weigh on margins for the foreseeable future. Consequently, our outlook for MicroStrategy remains negative."MSTR closed at $114.65 a share on Monday.