Maintaining Buy Rating on KKR & Co.: A Positive Long-Term Trajectory Amid Robust Fundraising and Attractive Valuation

Goldman Sachs analyst Alexander Blostein has reiterated their bullish stance on KKR stock, giving a Buy rating today.

Alexander Blostein has given his Buy rating due to a combination of factors surrounding KKR & Co.’s stock. He acknowledges the company’s robust fundraising outlook and adjusts the earnings per share (EPS) estimates for the coming years to reflect this positive trend. Despite anticipating that the recent block transactions and subsequent lower-yield on assets will affect the company in the short term, Blostein’s confidence in the stock’s performance remains steadfast. He predicts a significant compounded annual growth rate in fee-related earnings (FRE) over the next three years, underpinned by KKR’s diverse fundraising capabilities and growing momentum in retail sectors, as well as benefits from increased capital markets activity.

Moreover, Blostein finds the valuation of KKR & Co.’s stock to be attractive, trading at 15 times distributable earnings (DE) based on the updated 2025 estimates. The valuation also appears favorable when considering the implied 2025 FRE multiple. His outlook for the firm is buoyed by its resilient growth prospects and the potential for continued expansion. He notes that KKR’s unique position and the projected acceleration in capital markets activity contributing to KCM fees are key drivers that underpin his Buy rating, suggesting a long-term positive trajectory for the stock.

Blostein covers the Financial sector, focusing on stocks such as Invesco, KKR & Co, and Ameriprise Financial. According to TipRanks, Blostein has an average return of 16.6% and a 71.84% success rate on recommended stocks.

In another report released today, Bank of America Securities also maintained a Buy rating on the stock with a $133.00 price target.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

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.