Wells Fargo Starts KKR (KKR) at Outperform, Can Put $12.6 Billion in Uncalled Commitments to Work

Wells Fargo initiated coverage on shares of KKR (NYSE: KKR) with an Outperform rating and a valuation range of $19-$20 on Wednesday.

The firm believes the company's diversified private equity and capital market businesses are well positioned for an improving economy, and its alternative product lineup should gain traction. This is due to underfunded institutional investors searching for attractive risk reward activities that provide good portfolio diversification.

With low interest rates, record levels of corporate cash, and a generally improving capital markets, Wells Fargo feels that the company's incremental revenue should increase substantially.

As of December 31, 2010 KKR had ~$12.6 billion in uncalled commitments available for deployment in a widespread rang, starting from Western Europe to Greater China, Japan, Australia, and North America. The firm feels that there will be many opportunities for the company to put this capital to work.

Wells Fargo comments that, "We expect a rotation out of fixed income and liquidity products and into higher risk/reward products such as equity and alternatives in future periods. This phenomenon should benefit shares of KKR, considering the company’s product lineup."

For more ratings news on KKR click here and for the rating history of KKR click here.

Shares of KKR closed at $17.00 yesterday, with a 52-week range of $8.64-$18.29.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Piper Sandler Reiterates Overweight Rating on KKR (KKR), 'highest conviction name'
• Rocket Lab Corporation Announces Progress on Iridium Acquisition: HSR Period Lapses; Form S-4 Filed; FCC Applications Filed; Capital Strategy Underway
• Wells Fargo Downgrades Bio-Techne Corp. (TECH) to Equal Weight