visimoney
TLDR:
Bank of America predicts that several stocks will join the S&P 500 in the near future, leading to increased demand for their shares. The bank believes that KKR, with a market cap of $78 billion, could be the next investment management firm to join the index. Apollo Global Management, worth $58 billion, and Ares Management, valued at $38 billion, are also expected to be added in the future. Additionally, the bank suggests that enterprise software company Workday, valued at $76 billion, is the most likely candidate to be added to the S&P 500 next. The addition of these stocks is likely to drive up their prices due to inflows from passive ETFs, which presently own 17% of the float of constituent companies in the index on average. Bank of America has a $109 price objective for KKR, implying a 23% upside from Monday’s close.
