Strategy (MSTR): S&P 500 Omission About Committee Discretion, Says Benchmark

Benchmark analyst Mark Palmer reiterated a Buy rating and $705.00 price target on Strategy (NASDAQ: MSTR).

The analyst commented, "The S&P Dow Jones Indices committee on Friday after the market close released its September rebalancing and the headline additions to the S&P 500: AppLovin, (APP; Buy, $525 PT, Analyst: Mike Hickey), Robinhood (HOOD; Not Rated), and Emcor Group (EME; Not Rated). Conspicuously absent from the list was Strategy (MSTR), an omission that followed months of speculation that it could be among the index’s next additions. In the short run, that means no tailwind for MSTR from passive flows into its stock starting later this month. In the long run, the omission says less about MSTR’s business or its balance sheet than it does about the index committee’s discretion and their evolving comfort level with bitcoin-centric corporate models, in our view. S&P 500 watchers have seen this movie before, most famously with Tesla (TSLA; Buy, $475 PT, Analyst: Mickey Legg), which was skipped by the committee in September 2020 and then added to the index three months later."

For an analyst ratings summary and ratings history on Strategy click here. For more ratings news on Strategy click here.

Shares of Strategy closed at $335.87 yesterday.

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