MSCI delays exit from virtual asset companies, Wall Street cautiously views this decision

Source: HanKyungBlockchain Original Title: Avoided the Exclusion Sword… Wall Street “MSCI Decision, Needs to Be Watched a Little More”

Original Link: https://www.hankyung.com/article/202601076160B

Morgan Stanley Capital International(MSCI) has temporarily postponed removing companies holding virtual assets from the index, giving related companies a breather. Stock prices reacted immediately, but Wall Street interpreted this decision as a reprieve rather than a complete victory, remaining cautious.

According to the latest reports, major Wall Street analysts, while unanimously calling this a “surprisingly positive development,” also remain wary of long-term uncertainties.

TD Cowen analyst Lance Bittanza said, “This is undoubtedly positive and unexpected progress,” but he also pointed out, “We need to see if this is a true victory for the company or just a delay in the execution of the death sentence.” Although the exit has been temporarily avoided, the conditions set by MSCI in the future could change the situation at any time. TD Cowen maintains a buy rating on the company with a target price of $500.

Benchmark analyst Mark Palmer has given the highest Wall Street target price of $705, with a view similar to the above analysis.

Analyst Palmer stated, “The company has received good news, and its defensive logic has been recognized.” But he emphasized, “We cannot ignore that MSCI still retains the option to exclude non-operating companies from the index, and this event is far from over.”