KKR & Co. Inc.: A Year of Remarkable Growth and Strong Market Performance
KKR & Co. Inc. (KKR) is a prominent player in private equity, focusing on various sectors like energy, infrastructure, real estate, and credit strategies. With a market capitalization of $133.7 billion, this New York-based firm excels in acquisitions, leveraged buyouts (LBOs), management buyouts (MBOs), and other investment strategies.
KKR Outshines the Market
Over the past year, KKR’s stock has significantly outperformed the broader market. Year-to-date, shares have increased by an impressive 81.7% and by 125.9% over the last year. In comparison, the S&P 500 Index ($SPX) has risen by 24.7% in 2024 and 32.3% over the past 52 weeks.
Strong Performance Against Competitors
When comparing its performance to the Invesco Global Listed Private Equity ETF (PSP), which gained 10.8% in 2024 and 27.8% over the last year, KKR emerges as a clear frontrunner.
Growth in Assets and Earnings
KKR has also seen impressive growth in its assets under management (AUM). By the end of Q3, its fee-paying AUM rose by 19.3% year-over-year, totaling $506 billion. In Q3 alone, the firm raised $25 billion in new organic capital, contributing to a total of $122 billion in the past year. Furthermore, KKR has $108 billion in available funds across its investment strategies, which positions it well for future opportunities.
Following an exceptional Q3 earnings report on October 24, KKR’s shares jumped by 3.4%. The company reported a staggering revenue growth of 44.5% year-over-year, reaching $4.8 billion. Notably, net premium revenues surged by 182.1% from the previous year’s quarter, amounting to $621.2 million.
Adjusted net income grew dramatically by 51.5% to $1.2 billion, and the adjusted earnings per share (EPS) of $1.38 exceeded analysts’ expectations, enhancing investor confidence.
Future Outlook and Analyst Ratings
Looking ahead, analysts predict that KKR will achieve a 47.7% year-over-year growth in adjusted EPS, reaching $4.12 for the current fiscal year ending in December. Historically, KKR has had a mixed earnings surprise record, surpassing expectations in three out of the last four quarters.
Currently, KKR holds a consensus “Strong Buy” rating. Out of 18 analysts, 14 recommend a “Strong Buy,” while one suggests a “Moderate Buy,” and three advise a “Hold” rating.
This rating is slightly more optimistic than three months ago, when 13 analysts issued “Strong Buy” recommendations.
On October 29, JMP Securities analyst Devin Ryan maintained an “Outperform” rating for KKR and increased the price target to $155. The mean price target for KKR stands at $158.89, reflecting a modest 5.6% premium over current price levels. The highest target of $184 indicates a potential upside of 22.2%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
