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Payoneer Global (NASDAQ:PAYO) shares are trading more than 6% higher today on news the company will be added to the S&P SmallCap 600 index on October 12.
Payoneer will replace Lantheus (NASDAQ:LNTH), which is being transferred to the S&P MidCap 400, which in turn is replacing Targa Resources (NYSE:TRGP) which will join the S&P 500.
Companies that are being added to S&P indexes tend to see their shares trade higher upon the announcement of their inclusion. This way, shares of these companies gain higher exposure, given that S&P indexes are widely tracked by institutional investors.
As for Payoneer, Goldman Sachs analysts recently reiterated a Buy rating on shares after meeting the company’s management. The analysts have an $8.50 per share price target on PAYO shares.
“[Management] sees strong momentum in their core business, feels confident about their ability to execute and manage through various macro headwinds in the business, and is also well positioned to benefit from higher interest rates and expanding margins in the coming quarters,” the analysts wrote in a client note.
