KKR Gets Price Target Bump Following Q2 Earnings & Acquisition Deal

Many analysts raised the price target of KKR & Co Inc KKR following the Q2 FY23 results and acquisition deal reported yesterday.

Revenues of $3.63 billion came significantly higher than $323.4 million a year ago, and after-tax adjusted distributable EPS of $0.73, down 23% Y/Y, beat the consensus of $0.71.

Apart from this, the company disclosed the buyout of Simon & Schuster from Paramount Global PARA PARAA for $1.62 billion in an all-cash deal.

Maintaining the Buy rating, Deutsche Bank boosted the price target to $74 from $67 and Goldman Sachs to $72 from $65.

Also, Keefe, Bruyette & Woods analyst Michael Brown increased the price target to $76 from $71, affirming an Outperform rating.

The analyst lowered the 2023 EPS estimate to $3.43 from $3.56 (vs. consensus $3.42) on lower realized performance income, investment income, and insurance earnings. 

The analyst cut the 2024 EPS estimate to $4.80 from $4.87 (vs. consensus $4.70) on lower insurance earnings and slightly lower management fees.

Oppenheimer analyst Chris Kotowski increased the price target to $91 from $88 with an Outperform rating.

The analyst raised the 2024 EPS estimate to $4.68 from $3.42, reflecting higher than expected net accrued carry balance in Q2 and management's comments on H2 realization activity and Global Atlantic's reinsurance deal.

At an Outperform rating, BMO Capital Markets analyst Rufus Hone raised the price target to $74 from $72.

The analyst lowered 2023 core EPS estimates to $3.32 (from $3.44) for 2023 due to lower expected monetizations.

On the other hand, the analyst increased the core EPS estimate to $4.89 (from $4.88) for 2024 and $5.62 (from $5.50) for 2025, mainly on slightly higher out-year insurance earnings. 

Also, Barclays upped the price target to $73 from $68 at an Overweight rating. 

Price Action: KKR shares are trading lower by 1.11% at $61.13 on the last check Tuesday.