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Wells Fargo Starts KKR (KKR) at Outperform, Say Stock has 'Free Call Option'

April 11, 2013 4:38 PM EDT Send to a Friend
Get Alerts KKR Hot Sheet
Price: $22.29 -0.36%

Rating Summary:
    12 Buy, 5 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 25 | Down: 19 | New: 23
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Wells Fargo initiated coverage on KKR (NYSE: KKR) with an Outperform rating and a price target of $23 to $26.

Analyst Christopher Harris said, "we think the market underappreciates the long-term potential embedded in KKR’s portfolio with the current valuation assigning close to zero value to future incentives. Said differently, our sum of the parts achieves a $19 valuation (close to the current stock price) based solely on fee-related earnings and the book values of both accrued carry and investments. This implies investors can buy the stock today and get virtually a free call option on the upside potential of future carry and investment gains."

For an analyst ratings summary and ratings history on KKR (NYSE: KKR) click here. For more ratings news on KKR click here.

Shares of KKR closed at $20.20 yesterday.




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