Analyst Michael Brown of Wells Fargo maintained a Hold rating on KKR & Co (KKR – Research Report), retaining the price target of $151.00.
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Michael Brown has given his Hold rating due to a combination of factors related to KKR & Co’s recent financial performance. While KKR reported an earnings per share (EPS) that slightly beat estimates, the quality of this beat is considered low as it primarily resulted from a favorable tax rate rather than core operational improvements. Additionally, although fee-related earnings (FRE) surpassed expectations on revenue strength, the management fees, which are highly valued, fell short of both Wells Fargo’s estimates and the consensus.
Furthermore, KKR’s asset monetizations were slightly below expectations, and while investment returns were not negative, they were generally lower compared to the previous quarter. These factors highlight concerns about the sustainability of the current financial trajectory, making the outlook for 2025 crucial. As a result, the rating reflects a cautious stance given the mixed financial indicators, suggesting that investors should hold onto their shares until more consistent positive performance is observed.
Brown covers the Financial sector, focusing on stocks such as Stifel Financial, Raymond James Financial, and Franklin Resources. According to TipRanks, Brown has an average return of 14.7% and a 63.64% success rate on recommended stocks.
In another report released on January 30, HSBC also downgraded the stock to a Hold with a $173.00 price target.