UPDATE: Citigroup Raises Target on KKR to $18.50

Citigroup reiterates its Buy rating on KKR (NYSE: KKR) and raises its target price to $18.50 from $17 on favorable leading indicators.

Citigroup says, "Following post 4Q call on 2/9, we maintain Buy; raise SOTP target $1.50 to $18.50 on: 1) higher 2012E FRE; 2) higher target P/E (14x vs. 13.5x prior), the latter reflecting: a) building franchise momentum across and within businesses; b) higher base valuations for lesser positioned traditional managers; and c) stronger carry NPV impact. While 4Q disappointed due to ENI shortfall, underlying fundamentals nonetheless are robust in 2012, in our view."

Citigroup closed at $15.06 a share yesterday.