UBS Group has begun coverage of KKR & Co. Inc. (NYSE: KKR), issuing a buy rating along with a target price of $176.00 for the asset management firm. The announcement was made in a report released on the morning of November 7, 2023, indicating optimism for the company’s stock performance.
Analysts Provide Mixed Reviews on KKR’s Stock
Other analysts have recently provided their assessments of KKR. On October 13, Citigroup reduced its price target for KKR from $170.00 to $150.00, while maintaining a buy rating. Meanwhile, Weiss Ratings upgraded KKR from a “sell (d+)” to a “hold (c-)” rating on October 25. In a separate note, TD Cowen lowered its target price from $153.00 to $146.00 but also upheld a buy rating on November 10. Barclays increased its target from $151.00 to $154.00, awarding KKR an “overweight” rating on November 11. Furthermore, Morgan Stanley adjusted its price target down from $170.00 to $166.00 on October 21, while retaining an “overweight” rating.
Overall, out of 17 analysts, one assigned a Strong Buy rating, eleven issued Buy ratings, and five recommended holding the stock. The consensus rating is currently classified as “Moderate Buy,” with an average price target of $157.71, according to MarketBeat.com.
Recent Trading and Financial Performance
On the trading floor, KKR shares experienced a slight increase of 0.8%, opening at $142.72 on November 7. The company boasts a market capitalization of $127.21 billion and a price-to-earnings (P/E) ratio of 60.47. KKR’s stock has fluctuated between a 52-week low of $86.15 and a high of $170.40, with 50-day and 200-day moving averages of $122.37 and $131.62, respectively.
In its most recent earnings report, KKR announced earnings per share (EPS) of $1.41, surpassing analyst expectations of $1.30 by $0.11. The firm reported revenues of $4.36 billion, significantly higher than the anticipated $2.14 billion. KKR’s net margin was reported at 13.84%, with a return on equity of 6.12%. For the current year, analysts project an EPS of 5.19.
In addition to its financial performance, KKR recently declared a quarterly dividend of $0.185, which was paid to shareholders on December 2. The dividend payout ratio stands at 31.36%, representing an annualized yield of 0.5%.
Institutional Investment Trends
Institutional interest in KKR has increased, with several hedge funds modifying their positions. Notably, ESL Trust Services LLC and Asset Dedication LLC each acquired new stakes valued at approximately $26,000 during the third quarter. Other investors, including GGM Financials LLC and Saudi Central Bank, also entered new positions in KKR, indicating a growing confidence in the firm. Currently, institutional investors and hedge funds collectively hold 76.26% of KKR’s stock.
As KKR & Co. Inc. continues to attract attention from analysts and institutional investors, its performance in the coming months will be closely monitored by market participants and stakeholders alike.
