Morgan Stanley reiterates KKR stock rating, names it Top Pick amid capital markets recovery

Published 03/07/2025, 10:04
Morgan Stanley reiterates KKR stock rating, names it Top Pick amid capital markets recovery

Investing.com - Morgan Stanley (NYSE:MS) has reiterated its Overweight rating and $150.00 price target on KKR (NYSE:KKR), elevating the investment firm to "Top Pick" status with a projected 13% upside. According to InvestingPro data, KKR currently trades at $134.53, with analyst targets ranging from $127 to $189, suggesting potential for further gains. The company’s current market capitalization stands at approximately $120 billion.

The improved market outlook follows tariffs de-escalation, equity market rallies, and normalized volatility, creating favorable conditions for a capital markets recovery. Early second-quarter hesitation in capital markets activity appears to be giving way to improved dealmaking conditions. InvestingPro analysis reveals KKR as a prominent player in the Capital Markets industry, with strong financial health metrics and liquid assets exceeding short-term obligations.

KKR shares have underperformed year-to-date, declining 9% compared to the alternative asset manager group’s 2% drop and the S&P 500’s 5% gain, positioning the stock for a potential rebound.

Morgan Stanley views KKR as having greater exposure to capital markets activity compared to peers in its coverage universe, potentially benefiting the firm’s fundraising, realizations, transaction fees, and earnings.

The investment bank expects building capital markets activity will support confidence in earnings estimates with potential upward revisions for KKR.

In other recent news, investment firm KKR has signed definitive agreements to acquire ProTen Pty Limited, an Australian poultry infrastructure business, from Aware Super. The transaction, which is expected to close later this year pending regulatory approvals, will expand KKR’s infrastructure investments in the Australia-New Zealand region. Financial terms of the deal were not disclosed. Meanwhile, Piper Sandler has initiated coverage on KKR with an overweight rating, highlighting the firm’s strong position in private equity and growing insurance segment. The research firm noted KKR’s $8.7 billion in gross unrealized carried interest as of March 31, 2025. Additionally, TD Cowen maintained its Buy rating and $148 price target on KKR, citing structural growth vectors and platform operating leverage. In another development, China’s sovereign wealth fund has canceled its planned sale of $1 billion in US fund stakes, which included connections to KKR. Lastly, KKR, along with Stonepeak, made a takeover offer for Assura, a British healthcare real estate investor, valued at nearly £1.7 billion.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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