Distribution Changes Will Likely Weigh on KKR & Co. (KKR) Stock; Piper Jaffray Cuts Price Target to $21
Piper Jaffray maintained an Overweight rating on KKR (NYSE: KKR), and cut the price target to $21.00 (from $30.00), following an announced change to distribution policy. KKR has abandoned their variable distribution policy and fixed the quarterly payout at $0.16 per unit which represents fee-based earnings and the yield component of the balance sheet.
Analyst Jason Weyeneth commented, "KKR announced a change to its distribution policy that we anticipate will pressure the stock today and possibly over the next couple of months. While we are lowering our price target materially from $30 to $21, we would be buyers on significant weakness as the long-term value of the franchise hasn't been altered (arguably enhanced) and we see valuation support in the $16.00 (14x fee-related earnings plus the current balance sheet value) range."
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 $17.60 yesterday.