In a report released today, Christopher Allen from Citi reiterated a Buy rating on KKR & Co (KKR – Research Report), with a price target of $110.00.
Christopher Allen has given his Buy rating due to a combination of factors indicating strong future growth for KKR & Co. The company’s management has presented a compelling growth model at their investor day, projecting to double adjusted net income from 2023 to 2026, with targets of reaching $7-8 per share and aiming for $15+ per share within a decade or less. This growth is backed by KKR’s diverse structural growth opportunities across various sectors such as insurance, credit, infrastructure, Asia-Pacific, and private wealth, coupled with its established franchises in private equity and real estate, as well as a robust capital markets business.
Additionally, the acquisition of Global Atlantic has been a significant positive influence on KKR’s model, creating synergies and opportunities in credit, real estate, and other areas while aiming to double its assets under management. Furthermore, KKR’s largest asset class, credit, is poised for success due to the current interest rate environment, private equity dry powder, and the retreat of traditional banks. KKR’s infrastructure investments are also a strong growth avenue given the massive global investment potential and the firm’s established track record. The firm’s early and strategic investments in the Asia-Pacific region further underscore the potential for growth due to the region’s significant contribution to global GDP growth and relatively low alternative investment penetration. These strategic advantages underpin Allen’s optimistic outlook on KKR’s stock, reflected in his Buy rating.
According to TipRanks, Allen is a 5-star analyst with an average return of 18.0% and a 77.97% success rate. Allen covers the Financial sector, focusing on stocks such as Intercontinental Exchange, KKR & Co, and Virtu Financial.
In another report released today, Barclays also assigned a Buy rating to the stock with a $113.00 price target.
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KKR & Co (KKR) Company Description:
KKR & Co., Inc. engages in the provision of investment and private equity asset management services. It manages investments across multiple asset classes includes private equity, energy, infrastructure, real estate, credit, and hedge funds. The firm operates business through four business lines: Private Markets, Public Markets, Capital Markets, and Principal Activities. The Private Markets line manages and sponsors a group of private equity funds that invest capital for long-term appreciation, either through controlling ownership of a company or strategic minority positions. The Public Markets line operates combined credit and hedge funds platforms. The Capital Markets line comprises of global capital markets business. It implements traditional and non-traditional capital solutions for investments or companies seeking financing. The Principal Activities line manages the firm’s assets and deploys capital to support and grow the businesses. The company was founded by Henry R. Kravis and George R. Roberts in 1976 and is headquartered in New York, NY.
