On Monday, TD Cowen maintained a positive stance on KKR & Co. Inc. (NYSE:KKR), with the firm's analyst adjusting the stock price target slightly upwards to $129 from the previous $128, while reiterating a Buy rating on the stock.
The investment firm views KKR as its top pick in the alternative investment sector, closely followed by Apollo Global Management Inc. (NYSE:APO), which is expected to benefit from the current high interest rate environment.
The analyst acknowledges the possibility of KKR missing first-quarter consensus estimates for 2024 but notes that the forecasts for 2024 and 2025 Distributable Earnings (DE) are largely aligned with market expectations. The optimism is based on the company's strong prospects and management's strategy to potentially double earnings over the next five years, as outlined during the upcoming Investor Day on April 10, 2024.
According to TD Cowen, the focus for KKR investors should be on the long-term outlook, particularly from 2027 to 2030, rather than short-term performance. The firm anticipates that the management will present a clear plan for earnings growth at the Investor Day event, which could significantly influence the company's trajectory.
Moreover, the potential inclusion of KKR in the S&P 500 Index and a recovery in capital markets are cited as factors that could provide intermediate-term support for the company's shares. The analyst's commentary suggests confidence in KKR's strategic plans and its ability to navigate the current financial landscape effectively.
InvestingPro Insights
With KKR & Co. Inc. (NYSE:KKR) standing out as a top pick in the alternative investment sector, it's crucial to consider the latest metrics and analyst insights. According to real-time data from InvestingPro, the company boasts a robust market capitalization of $90.16 billion and an adjusted P/E ratio of 24.45.
These figures underscore KKR's substantial presence in the market and its valuation relative to earnings. Additionally, KKR has demonstrated impressive revenue growth, with a staggering 238.39% increase over the last twelve months as of Q1 2023, highlighting its significant expansion and financial performance.
InvestingPro Tips reveal that KKR has a history of rewarding shareholders, having raised its dividend for four consecutive years and maintained dividend payments for 15 consecutive years. This consistent return to investors aligns with the positive outlook expressed by TD Cowen. Moreover, analysts predict the company will remain profitable this year, a sentiment that may be bolstered during the upcoming Investor Day with the presentation of a strategic plan for earnings growth.
For investors seeking a comprehensive analysis and additional insights, there are more InvestingPro Tips available for KKR at: https://www.investing.com/pro/KKR. By using the coupon code PRONEWS24, readers can receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to an extended list of valuable tips to inform their investment decisions.
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