What Analysts Are Saying About KKR Real Estate Finance Stock

In the last three months, 5 analysts have published ratings on KKR Real Estate Finance KREF, offering a diverse range of perspectives from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Analysts have set 12-month price targets for KKR Real Estate Finance, revealing an average target of $12.45, a high estimate of $13.50, and a low estimate of $11.50. Experiencing a 1.19% decline, the current average is now lower than the previous average price target of $12.60.

Deciphering Analyst Ratings: An In-Depth Analysis

In examining recent analyst actions, we gain insights into how financial experts perceive KKR Real Estate Finance. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to KKR Real Estate Finance. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of KKR Real Estate Finance compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of KKR Real Estate Finance's stock. This analysis reveals shifts in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into KKR Real Estate Finance's market standing. Stay informed and make well-considered decisions with our Ratings Table.

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Delving into KKR Real Estate Finance's Background

KKR Real Estate Finance Trust Inc is a real estate finance company that focuses on originating and acquiring senior mortgage loans secured by CRE assets. The investment is to originate or acquire senior mortgage loans collateralized by institutional-quality CRE assets that are owned and operated by experienced and well-capitalized sponsors and located in liquid markets with underlying fundamentals. KKR manages investments across multiple asset classes, including private equity, real estates, energy, infrastructure, credit, and hedge funds. The company's investment objective is capital preservation and generating attractive risk-adjusted returns for its stockholders over the long term, through dividends.

Key Indicators: KKR Real Estate Finance's Financial Health

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Negative Revenue Trend: Examining KKR Real Estate Finance's financials over 3 months reveals challenges. As of 30 September, 2024, the company experienced a decline of approximately -3.96% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Financials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: KKR Real Estate Finance's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -31.71%, the company may face hurdles in effective cost management.

Return on Equity (ROE): KKR Real Estate Finance's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -0.95%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): KKR Real Estate Finance's ROA is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of -0.19%, the company may encounter challenges in delivering satisfactory returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 3.9, KKR Real Estate Finance adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.