Investment Firm KKR & Co’s Earnings to More Than Double in Q4; Stock Is Well Worth Watching

The U.S.-based investment firm KKR & Co is expected to report its fourth-quarter earnings of $1.02 per share, which represents year-over-year growth of over 108% from $0.49 per share seen in the same period a year ago.

The company that manages multiple alternative asset classes would post revenue growth of 17% to $784.8 million. It is worth noting that the company has consistently beaten consensus earnings estimates in the last two years, at least.

KKR stock closed 3.35% higher at $68.21 on Friday. The stock fell over 8% so far this year after surging over 80% in 2021.

Analyst Comments

“Strong near-term growth with fundraising supercycle and GA accretion coming into earnings, but we see this reflected in the price at the current valuation for a business model with greater earnings contribution from the balance sheet (40%). While strong investment performance could drive upward estimate revisions, we have less visibility on more episodic investment income gains,” noted Michael Cyprys, equity analyst at Morgan Stanley.

“Mgmt’s increased focus on expanding the platform with adjacent strategies and scaling successor funds should drive higher fee-related earnings (FRE).”

KKR Stock Price Forecast

Ten analysts who offered stock ratings for KKR in the last three months forecast the average price in 12 months of $89.55 with a high forecast of $94.00 and a low forecast of $83.00.

The average price target represents a 31.32% change from the last price of $68.19. Of those ten analysts, eight rated “Buy”, two rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $83 with a high of $115 under a bull scenario and $28 under the worst-case scenario. The investment bank gave an “Equal-weight” rating on the investment firm’s stock.

Several other analysts have also updated their stock outlook. Wells Fargo cut the target price to $86 from $90. Oppenheimer lowered the target price to $88 from $89. Deutsche Bank slashed the target price to $90 from $94. Citigroup lifted the price target to $93.5 from $92.

Technical analysis suggests it is good to buy as 150-day Moving Average and 100-200-day MACD Oscillator signals a buying opportunity.

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