Deutsche Bank Initiates Coverage On KFN

Deutsche Bank is initiating coverage on KKR Financial Holdings KFN with a Buy rating and a price target set at $12.50. Says Deutsche Bank, in its report, “We expect KKR Financial to continue posting attractive returns, as it makes new investments across its targeted assets and grows its portfolio. We believe the portfolio's net long exposure to floating-rate investments should result in net interest income benefiting from higher LIBOR rates. With shares currently trading in line with GAAP book value and given our dividend estimates, we believe shares are attractive. We are initiating coverage with a Buy rating and a price target of $12.50 per share.” KFN closed yesterday at $9.72.