On January 7, Strategy's stock price rose nearly 6% in after-hours trading on Tuesday after MSCI announced that it would not proceed with its plan to remove DAT from its index for the time being, but analysts said the crisis of its removal from the index was not yet over.
TD Cowen analyst Lance Vitanza stated, "Consistent with our previous analysis, this significantly positive development surprised us, and it's currently unclear whether it represents a victory for the defense or merely a temporary halt to action." According to FactSet data, Vitanza maintains a "buy" rating on MSTR stock with a target price of $500.
Mark Palmer of Benchmark, the most bullish analyst on the stock (with a "buy" rating and a target price of $705), views this news as positive. "MSCI's decision provides Strategy with a welcome respite, and its argument against removing digital asset reserve companies from the index seems to have had the desired effect. However, MSCI's consideration of removing non-operating companies from its indexes means this turmoil is not over."
