Goldman Sachs has reaffirmed its Buy rating on KKR & Co. Inc. (NYSE:KKR) stock with a steady price target of $137.00 following the company's recent monetization income update. KKR reported over $535 million in monetization income for the third quarter of 2024, exceeding second-quarter guidance but falling short of consensus estimates.
The income included $450 million from the Asset Management division and $85 million from the Strategic Holdings segment. The majority of the Asset Management income was derived from realized performance income, while the Strategic Holdings segment saw gains from a sale of a portfolio company and carried interest crystallization.
Despite the positive update, the reported figure is below consensus estimates, indicating potential challenges in realization recovery. However, analysts have responded positively to KKR's financial performance and strategic growth, with firms like HSBC and TD Cowen maintaining Buy ratings and highlighting the company's earnings potential.
Additionally, KKR has raised $4.6 billion for a fund dedicated to mid-market deals in North America, surpassing its fundraising target and showcasing strong investor confidence. The company is also close to a significant deal with Axel Springer, further solidifying its growth trajectory.
InvestingPro Insights
InvestingPro data reveals that KKR has a market capitalization of $117.67 billion and a P/E ratio of 30.23, suggesting high earnings multiples but a low PEG ratio indicating potential for stock growth. With significant revenue growth and a commitment to dividend payments, KKR presents opportunities for income-focused investors.
Analysts predict profitability for the company this year, despite lower-than-expected monetization income. For a deeper analysis of KKR's financial health and market position, investors can access additional InvestingPro Tips on the platform to make informed investment decisions.
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