Analyst: The risk of Strategy being removed from the MSCI index has not yet been resolved

BlockBeats News, January 7, Strategy shares rose nearly 6% in after-hours trading on Tuesday after a certain exchange announced it would temporarily not proceed with plans to remove DAT company from its index. However, analysts said the crisis of being removed from the index is not yet over.

TD Cowen analyst Lance Vitanza stated: "Consistent with our previous analysis, this apparently positive development came as a surprise to us. It is still unclear whether this represents a victory for the defense or merely a postponement of execution." According to FactSet data, Vitanza gives MSTR stock a "Buy" rating with a target price of $500.

The most bullish analyst on the stock, Benchmark's Mark Palmer (who gives a "Buy" rating and a target price of $705), sees this news as positive. "The exchange's decision has given Strategy company a welcome respite, and the company's arguments against removing digital asset reserve companies from the index seem to have had the intended effect. However, the exchange's consideration of removing non-operating companies from its index means that this episode is not yet over."