Piper Sandler initiates KKR stock coverage with overweight rating

Published 30/06/2025, 05:52
Piper Sandler initiates KKR stock coverage with overweight rating

Investing.com - Piper Sandler initiated coverage on (NYSE:KKR) with an overweight rating and a $150 price target on Monday. The stock, currently trading at $134.29, has shown strong momentum with a 9.95% gain over the past week. According to InvestingPro data, analyst consensus remains bullish with price targets ranging from $127 to $189.

The investment firm highlighted KKR’s strong position in private equity, which represents approximately 75% of the company’s earnings per share, while noting the growing importance of its insurance segment, which accounts for about 25% of earnings. With a market capitalization of $119.6 billion and a "GOOD" Financial Health score from InvestingPro, KKR maintains a solid financial foundation despite trading at elevated multiples.

Piper Sandler emphasized that KKR’s increased focus on insurance following mergers and acquisitions has demonstrated the value of an at-scale balance sheet, which also supports the company’s retail opportunity execution.

The research firm pointed to KKR’s $8.7 billion in gross unrealized carried interest as of March 31, 2025, which could be realized through increased capital markets activity.

Piper Sandler also noted that KKR holds a leading position in executing retail opportunities while maintaining diversified growth levers, despite the company’s evolution toward becoming a full-stack asset and liability originator through its Global Atlantic insurance business.

In other recent news, KKR & Co. was in the spotlight as TD Cowen maintained its Buy rating and $148 price target on the firm, citing structural growth and platform operating leverage as key strengths. Meanwhile, KKR is involved in a competitive bid for Assura, a British healthcare real estate investor. KKR, alongside Stonepeak, has increased their cash offer for Assura to approximately £1.7 billion, leading to Assura’s decision to delist from the London Stock Exchange (LON:LSEG). In another development, Japanese auto supplier Marelli Corp, owned by KKR, filed for Chapter 11 bankruptcy protection in the United States, securing $1.1 billion in financing to support its restructuring plan. Marelli assured that it does not expect any operational disruptions during the process. Additionally, China’s sovereign wealth fund, China Investment Corp., has reversed its decision to sell $1 billion in US fund stakes, which included positions with KKR. This decision was influenced by concerns over US-China trade tensions and the perception of retreating from investments. These developments highlight significant moves involving KKR and its associated entities.

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