On Monday, JMP Securities adjusted its stock price target for KKR & Co. Inc. (NYSE:KKR), increasing it to $115 from the previous $112, while retaining a Market Outperform rating on the stock. The firm's decision follows KKR's recent Investor Day, which took place last Wednesday, marking the first in-person event of its kind since 2018.
The meeting featured presentations from several of the company's senior leaders and highlighted KKR's ongoing strategic growth initiatives.
KKR's management emphasized their commitment to key areas such as Infrastructure, Credit, Asia, Insurance, Core Private Equity, and Private Wealth, among others. The Investor Day reinforced the firm's direction under the new management team and provided insights into the company's long-term strategy.
JMP Securities expressed confidence in KKR's business trajectory over time, citing the Investor Day discussions as a basis for their optimism.
The company also reiterated its financial targets for 2026, aiming for over $4.50 in fee-related earnings (FRE) and approximately $7.50 in adjusted earnings per share (EPS) at the midpoint. While JMP Securities believes these targets are already reflected in the current stock price, the firm took note of KKR's ambitions to double in size from 2026 to 2031.
KKR's management outlined a goal to reach $15 or more in adjusted EPS within the next decade, without the necessity of launching new business ventures.
JMP Securities' updated price target reflects their belief in KKR's ability to achieve these ambitious growth targets. The firm's commentary on KKR's Investor Day underlines the potential they see in KKR's strategic initiatives and the strength of its leadership team in steering the company towards its long-term objectives.
InvestingPro Insights
KKR & Co. Inc. (NYSE:KKR) has been a topic of interest for investors, particularly following its recent Investor Day and the subsequent price target update from JMP Securities. In light of these developments, InvestingPro data provides additional context that may be valuable for those closely monitoring the company's performance.
As of the last twelve months leading up to Q4 2023, KKR boasts a market capitalization of $85.58 billion and an impressive revenue growth of 238.39%, signaling a significant expansion in its business scale. The company's P/E ratio stands at 22.99, with an adjusted P/E ratio of 23.27, providing a measure of the market's valuation of its earnings.
Reinforcing the confidence in KKR's growth trajectory, InvestingPro Tips highlight the company's robust track record of dividend growth, having increased its dividend for 4 consecutive years and maintained dividend payments for 15 consecutive years.
This consistency in rewarding shareholders is complemented by the company's strong performance, with a high return over the last year and a significant price uptick over the last six months.
For investors looking to delve deeper into KKR's financial health and future prospects, InvestingPro offers additional insights, with over 11 tips available for those who wish to further their analysis. To access these tips and more, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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