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UPDATE: Deutsche Bank Reiterates on KKR Financial Holdings LLC on Disappointing 3Q Results, Attractive Valuation

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UPDATE: Compass Point Downgrades KKR Financial
Benzinga's Top Downgrades

In a report published Thursday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on KKR Financial Holdings LLC (NYSE: KFN), but lowered the price target from $13.50 to $11.50.

In the report, Deutsche Bank noted, “Maintain Buy given attractive valuation. KFN reported disappointing 3Q results as lower discount accretion and loan loss provisions resulted in NII and earnings below our estimate. BVPS remained flat seq. Going forward, KFN will focus on investments with higher cash yields, primarily bank loans and high yield debt, opportunistic credit, and specialty finance lending. We are reducing our estimates to reflect the new mix of future investments and reducing our price target multiple to reflect our lower ROE expectations. While we expect shares to be weak on the results, we are maintaining our Buy rating given the valuation relative to our new target.”

KKR Financial Holdings LLC closed on Wednesday at $10.87.

Latest Ratings for KFN

Jan 2014Compass PointDowngradesBuyNeutral
Dec 2013Deutsche BankDowngradesBuyHold
Dec 2013Wells FargoDowngradesOutperformMarket Perform

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Posted-In: Deutsche Bank Greg PooleAnalyst Color Price Target Analyst Ratings


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