Proactive Investors - Dell Inc. (NASDAQ:DELL) shares added almost 5% on Monday after it was revealed the technology company will be added to the S&P 500 as part of its quarterly rebalance.
Also being added are Palantir Technologies Inc (NYSE:PLTR), which surged almost 13% on the news, and Erie Indemnity, replacing American Airlines (NASDAQ:AAL) Group Inc (NASDAQ:AAL, ETR:A1G), Etsy (NASDAQ:ETSY) Inc (NASDAQ:ETSY, ETR:3E2), and Bio-Rad Laboratories Inc (NYSE:BIO).
Dell is rejoining the index, after previously holding a place in the S&P 500 from 1996 to 2013, before going private.
Analysts at Citi see Dell’s return as a potential catalyst, based on their prior research.
“We believe Dell shares can continue to work post-inclusion, given multiple other potential catalysts ahead including recovery in general purpose infrastructure demand, PC refresh cycle ahead into CY25, AI momentum and capital returns,” they wrote.
“We maintain our ‘Buy’ rating given attractive risk/reward.”
They awarded the stock a $160 price target. Shares of Dell were up 4.9% at $107 late morning on Monday.