Blackstone being added to S&P 500 a ‘major milestone,’ says Morgan Stanley

Morgan Stanley notes that S&P Dow Jones announced its quarterly rebalance changes after the close on Friday, September 1, with which it announced that Blackstone (BX) will be added to the S&P 500 index prior to the open of trading on September 18. While the change was largely expected after S&P Dow Jones changed its eligibility criteria in April, the news is “a major milestone” for Blackstone, which will become the first listed alternative asset manager to be included in the S&P 500. The firm, which views the index addition as a positive catalyst for the stock and the sector overall that can help expand the investor base and support a re-rating, notes that Apollo Global (APO), Ares Management (ARES) and KKR (KKR) similarly meet the eligibility criteria for S&P 500 inclusion. Morgan Stanley has an Overweight rating and $125 price target on Blackstone shares.