FS KKR Group (FSK) PT Raised to $22 at KBW, Citing 'Strong Dividend Guidance'

Keefe, Bruyette & Woods analyst Paul Johnson raised the price target on FS KKR Group (NYSE: FSK) to $22.00 (from $21.00) while maintaining a Market Perform rating.

The analyst commented: "Miss on Higher Repayments, Activity Slips to Q1; Strong Dividend Guidance; Repayment activity kept up its elevated pace this quarter, while investments funded were down due to some activity slipping into 1Q. We are adjusting our estimates slightly lower due to the higher than estimated net repayment in 4Q as well as a higher expected cost of debt next year. NAV declined -0.7%, which was mostly driven by earnings below the dividend. Nonaccruals declined; however, our KBW watchlist investment increased to 2.5% of the portfolio (cost) from 1.4%. FSK expects to pay $2.80 in total dividends in 2025 (base + supplemental), which is an 11.9% yield on the stock. We are raising our price target slightly due to the continued rotation of legacy assets and dividend guidance."

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