By Sam Boughedda
Morgan Stanley said in a note Wednesday that Blackstone's (NYSE:BX) S&P 500 inclusion is in sight after the S&P Dow Jones announced changes to their Share Class Eligibility Rules for the S&P indices.
In a short memo, the analysts explained that the results of the review state that all companies with multiple share class structures are now considered eligible candidates for addition to the S&P Composite 1500 and its component indices, provided they meet other eligibility criteria.
As a result, Blackstone is now newly eligible for the S&P 500 index and is among the largest Mega Cap names that currently pass all other S&P 500 index eligibility criteria, said the analysts.
Overweight-rated Blackstone was previously kept out of the index due to the multi-share class rule. "We view this as a positive catalyst for BX to expand the investor base and support a re-rating," the analysts wrote.