Oppenheimer raises its rating on KKR KKR from Perform to Outperform and establishes a price target of $18.
Oppenheimer notes, "We are upgrading KKR to Outperform from Perform as the company has recently made great headway in monetizing investments in its large and critically important 2006 Fund. This $17.6B fund represents 44% of KKR's invested private equity capital, but has not yet generated significant "cash carry" for distributions despite some $5B in gains, of which about $2B have been realized. If and when the 2006 Fund crosses over, cash carry AUM should increase from $10B to $27B and the estimated gains that can generate cash carry for distributions will likely increase from roughly $4B to $9B. Unlike most peers, the 2006 Fund does not have to overcome any "hurdle" to generate carry."
KKR closed at $12.89 on Friday.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in