TD Cowen believes Smarter Web shares have 90% room to rise, preferred stock plans move forward

TD Cowen raised its target price for Smarter Web to £ 0.73, maintaining its "Buy" rating.

TD Cowen, a well-known investment bank, raised its target price for Bitcoin vault company Smarter Web (ticker code: MORE) from £ 0.64 (approximately US$0.87) to £ 0.73 (approximately US$0.99) and maintained its "Buy" rating. The adjustment occurred after the company announced plans to issue new perpetual preferred shares.

Analysts are optimistic about long-term capital sources, implying about 90% upside.

TD Cowen analysts pointed out that the proposed MORE perpetual preferred stock is expected to provide the London-listed Bitcoin vault company with another long-term capital raising channel, thereby expanding its financing options. Based on Monday's closing price of 0.385 pounds, a target price of 0.73 pounds means about 90% of upside potential.

This increase reverses part of TD Cowen's adjustment in July. At that time, the bank lowered its target price from £ 1 to £ 0.64 due to updated its Bitcoin price forecast and treasury assumptions.

Analysts wrote: "More broadly, we view the move as evidence of the growing maturity of the Bitcoin treasury ecosystem, as issuers explore preferred shares, secured credit lines, convertible securities and other forms of structured capital."

Preferred Stock Details and Listing Plan

Smarter Web announced on September 11 that it is considering an initial public offering of a new class of perpetual preferred shares with the reserved code MORE. The company plans to raise total proceeds of 15 million to 25 million pounds through this possible offering and has set minimum funding conditions of at least 10 million pounds. In addition, a listing requires other requirements, including shareholder approval and approval of the prospectus by the Financial Conduct Authority (FCA).

It is understood that these preferred shares are expected to carry cumulative variable rate preferred dividends paid weekly. The holder will have liquidation priority and the company will have redemption rights. MORE shares do not have voting rights at shareholders 'meetings.

Ordinary shareholders will vote on the changes needed to create a new preferred stock class at a shareholders 'meeting scheduled for September 28. If the remaining conditions are met, the security is intended to be approved for listing on the main market of the London Stock Exchange.

This proposal is not an isolated case. Previously, Bitcoin vault companies such as Strategy have used preferred securities to raise funds. Strategy's STRC preferred stock was listed on Binance in July this year, and Bitfinex Securities subsequently listed tokenized treasury products linked to several public Bitcoin holders, including products that provide economic exposure to Strategy STRC preferred stock.

Treasury Performance and Financing Repayment

Although it repaid the TOBAM-backed Smarter Convert tool on July 23 (causing Bitcoin yields to be dragged down by approximately 420 basis points), Smarter Web reported a bitcoin yield of approximately 11.5% for the year ended September 2. The company sold 177.8909127 BTC to prepay the financing, using bitcoins purchased through proceeds from the instrument.

The repayment of approximately US$11.7 million was completed approximately two weeks before due, eliminating the potential issuance of more than 7.7 million common shares associated with the convertible structure. CEO Andrew Webley said at the time that convertible instruments provided an alternative source of financing in the early stages of the company's treasury expansion, but management no longer believes convertible instruments are the preferred financing option for its current stance.

After repayment, Smarter Web holds exactly 2,700 bitcoins. It resumed buying shortly thereafter, buying 11.89 bitcoins, bringing its position to 2,712 in early August. The purchase had placed the company at No. 28 in the Bitcoin vault rankings.

Smarter Web used multiple financing channels in expanding its coffers. In May this year, the company disclosed that it had withdrawn £ 18 million from Coinbase's Bitcoin secured credit line, with a leverage ratio of approximately 12.19%. The annual interest rate of this amount fluctuates between 6.75% and 7.25%, and can be repaid in advance without penalty. At that time, after the company purchased 10 bitcoins at an average price of £ 55,786 each, its position increased to 2,869 bitcoins, with a total investment of £ 232.48 million, and an average acquisition cost of £ 81,032 per bitcoin.

Bitcoin forecasts support valuation

On Monday, Bitcoin was close to $78,000, about 38% below its all-time high of nearly $126,000. TD Cowen's basic scenario assumes that Bitcoin will reach about $100,000 by December; an optimistic scenario looks at $175,000 and a pessimistic scenario looks at $25,000.

Based on the above assumptions, TD Cowen previously set the operating value of Smarter Web's treasury at £ 63 million and estimated the value of its Bitcoin holdings at the end of 2026 to be £ 229 million. After deducting approximately £ 18 million in net debt, analysts came up with an equity value of £ 274 million, equivalent to £ 0.64 per share (based on 426 million fully diluted shares).

Smarter Web began building a Bitcoin vault in 2025 under its long-term "Ten-Year Plan." The company has accepted Bitcoin payments since 2022, and has since incorporated Bitcoin accumulation into corporate treasury policies. Through repeated purchases in 2025 and 2026, its Bitcoin position expanded rapidly and used equity financing, convertible financing and secured borrowing to support this strategy. The company moved from the Aquis Exchange to the main market of the London Stock Exchange in February 2026.

TD Cowen expects its acquisition activity to gradually return to the levels recorded in fiscal 2025 as the company continues to develop its treasury and operations businesses.