Compass Point Reiterates a 'Buy' on KKR Financial (KFN); Realizations Trump Provision

Compass Point reiterates a 'Buy' on KKR Financial (NYSE: KFN) price target of $14.00.

Analyst, Jason Stewart, said, "KFN continues to deliver consistent quarterly results on a cash and operating basis. 1Q12 GAAP earnings of $0.48 beat Compass Point and consensus expectations by $0.05 and $0.06, respectively. The strong balance sheet and investable capital balances should allow the firm to capitalize on any macro weakness and distressed or non-economic sellers in KFN's target investment areas...We continue to believe KFN shares are attractively priced at 4.9x our 2012 earnings estimate especially for a business that has generated an 18.6% average ROE over the last five quarters."

For an analyst ratings summary and ratings history on KKR Financial click here. For more ratings news on KKR Financial click here.

Shares of KKR Financial closed at $9.27 yesterday.

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