11:10 AM EDT, 06/30/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
Our investment thesis is that the exit ramp to monetize private equity (PE) holdings will begin in the second half of 2025. We think this will benefit KKR's PE segment, where we have seen fewer transactions to monetize PE investments via M&A or secondary deals with other ALT firms. Thus, we raise our target price by $11 to $154 using a forward P/E of 23.0x compared to the historical two-year average at 22.5x. We keep our 2025 EPS at $5.30 and 2026's at $6.70 compared to the consensus at $5.15 and $6.73, respectively. The firm states that 79% of segment earnings are from durable and recurring portions of the business. On March 31, KKR's total AUM was $664B, up 15% Y/Y, with fee-paying AUM at $526B, up 12% Y/Y. In Q1 2025, fee-related earnings represented 59% of total segment earnings, with insurance at 19%, investing earnings 20%, and strategic holdings operating earnings at 2%. The biggest risks to KKR's monetization of companies owned in PE funds are a steep jump in interest rates and global recession.