Goldman Sachs Upgrades KKR (KKR) to Buy, Sees 'Accelerating Harvesting'
Tweet Send to a FriendGet Alerts KKR Hot Sheet
Price: $20.91 -0.29%
Rating Summary:
11 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Rating Summary:
11 Buy, 3 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 25 | New: 24
Trade KKR Now!
Goldman Sachs upgraded KKR (NYSE: KKR) from Neutral to Buy with a price target of $19.50 (from $16.50).
The firm expects shares to outperform citing: 1) Post significant 4Q12 realization activity, the 2006 Fund has substantially filled the "netting hole" pushing this $16 bn fund closer to "cash" carry mode and supporting accelerating distributions in ‘13; 2) A $6.5 bn balance sheet offers strategic and financial flexibility to diversify the firm via seeding new funds and new acquisitions; 3) Valuation is attractive with the implied performance fee multiple at 1.3X vs. the group's 2.7X, suggesting investors undervalue the firm’s cash carry-generating potential in 2013.
Goldman lowered 2012 ENI estimate to $2.14 from $2.80 on lower portfolio performance in 4Q12, but raised 2013/2014 ENI estimates to $2.40/$2.55 on a better outlook for fund appreciation in 2013. The firm raiseed 2013/2014 distribution forecasts to $1.19/$1.20, well ahead of the Street's $1.06/$1.02.
For an analyst ratings summary and ratings history on KKR click here. For more ratings news on KKR click here.
Shares of KKR closed at $15.54 yesterday, with a 52 week range of $11.03-$15.90.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
The firm expects shares to outperform citing: 1) Post significant 4Q12 realization activity, the 2006 Fund has substantially filled the "netting hole" pushing this $16 bn fund closer to "cash" carry mode and supporting accelerating distributions in ‘13; 2) A $6.5 bn balance sheet offers strategic and financial flexibility to diversify the firm via seeding new funds and new acquisitions; 3) Valuation is attractive with the implied performance fee multiple at 1.3X vs. the group's 2.7X, suggesting investors undervalue the firm’s cash carry-generating potential in 2013.
Goldman lowered 2012 ENI estimate to $2.14 from $2.80 on lower portfolio performance in 4Q12, but raised 2013/2014 ENI estimates to $2.40/$2.55 on a better outlook for fund appreciation in 2013. The firm raiseed 2013/2014 distribution forecasts to $1.19/$1.20, well ahead of the Street's $1.06/$1.02.
For an analyst ratings summary and ratings history on KKR click here. For more ratings news on KKR click here.
Shares of KKR closed at $15.54 yesterday, with a 52 week range of $11.03-$15.90.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Goldman Sachs Upgrades Abbott Labs (ABT) to Buy
- Actavis (ACT) Fairly Valued After Run-Up - Jefferies
- Macquarie Upgrades IntercontinentalExchange (ICE) to Outperform
Create E-mail Alert Related Categories
Analyst EPS Change, Analyst PT Change, Hot Upgrades, UpgradesRelated Entities
Goldman Sachs
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
