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Investing.com - Piper Sandler has reiterated its Overweight rating on KKR (NYSE:KKR), a $123 billion market cap investment firm, while maintaining its price target of $166.00 following a group meeting between KKR’s CFO Rob Lewin and institutional investors last week. According to InvestingPro data, the stock currently trades at a P/E ratio of 61.6x, with analyst targets ranging from $135 to $187.
The investment firm expressed a positive outlook on KKR, noting that deal activity is picking up across the company’s business segments. This optimism is reflected in InvestingPro data, which shows 9 analysts have recently revised their earnings estimates upward. Piper Sandler highlighted this increased transaction momentum as a key factor supporting its maintained bullish stance on the stock.
Digital infrastructure investments were identified as a particular area of strength, with Piper Sandler describing it as a "multi-year opportunity" for KKR. The firm also pointed to the longer-term 401K market as potentially "additive to the current story" for the investment management company.
Despite the overall positive assessment, Piper Sandler acknowledged that KKR’s insurance business faces near-term challenges. These difficulties stem from tight asset spreads and significant competition on the liability side of the insurance market.
The research note follows Piper Sandler’s meeting with KKR CFO Rob Lewin, which the firm indicated reinforced its positive view on the company’s overall business trajectory and growth prospects.
In other recent news, Harley-Davidson has completed the sale of residual interests in securitized consumer loan receivables, marking a significant step in its strategic partnership with KKR and PIMCO. The transaction involved the sale of 95% of these interests at a premium, generating over $230 million in proceeds. Meanwhile, KKR has emerged as the lead bidder to purchase Nissan’s global headquarters, with a bid valued at approximately $610 million. Additionally, KKR and Inhabeo have acquired seven student housing properties in the United Kingdom from Curlew Student Trust II, with Inhabeo managing the assets. In another development, KKR has appointed Adam Selipsky, former CEO of Amazon Web Services, as a Senior Advisor for AI strategy. Selipsky will focus on digital infrastructure investments within KKR’s Real Assets business. Furthermore, THL Partners has agreed to acquire Headlands Research from KKR, with the deal expected to close in 2025. These developments highlight KKR’s active role in various sectors, including real estate, technology, and strategic investments.
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