Jefferies Starts KKR Financial (KFN) at Hold
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Price: $11.54 --0%
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 11 | New: 26
Rating Summary:
1 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 5 | Down: 11 | New: 26
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Jefferies initiates coverage on KKR Financial (NYSE: KFN) with a Hold and $9 price target.
The firm comments, "KFN trades on a price to book multiple that is highly correlated to underlying investment spreads. During times of attractive investment opportunities (widening spreads), its valuation suffers. During times of weakening investment opportunities (tightening spreads), the stock's valuation improves. Thus, there are good environments for KFN to source investments and there are good environments for investors to own shares of KFN, but these two environments often do not coincide with one another. Our view is that investment spreads will not tighten materially until greater clarity surrounding the recovery of the U.S. economy is visible."
For more ratings news on KKR Financial click here and for the rating history of KKR Financial click here.
Shares of KKR Financial closed at $9.00 yesterday.
The firm comments, "KFN trades on a price to book multiple that is highly correlated to underlying investment spreads. During times of attractive investment opportunities (widening spreads), its valuation suffers. During times of weakening investment opportunities (tightening spreads), the stock's valuation improves. Thus, there are good environments for KFN to source investments and there are good environments for investors to own shares of KFN, but these two environments often do not coincide with one another. Our view is that investment spreads will not tighten materially until greater clarity surrounding the recovery of the U.S. economy is visible."
For more ratings news on KKR Financial click here and for the rating history of KKR Financial click here.
Shares of KKR Financial closed at $9.00 yesterday.
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