HSBC starts ‘under-appreciated’ KKR with a Buy

As previously reported, HSBC analyst Vikram Gandhi initiated coverage of KKR with a Buy rating and $148 price target. While the alternative asset management industry has historically enjoyed significant growth, the past couple of years “have not been easy from a fundraising perspective,” notes the analyst, who also notes incremental optimism from most management teams in terms of asset values bottoming out and the market opening up to get deals over the line. For KKR, the firm thinks the market “under-appreciates its significant earnings growth prospects,” the analyst tells investors.