KKR Stock Receives ‘Outperform’ Rating at Credit Suisse

KKR stock coverage was reinstated with an ‘outperform’ rating and $16 price target at Credit Suisse on Thursday morning.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- KKR (KKR) - Get Report stock coverage was reinstated with an "outperform" rating and $16 price target at Credit Suisse on Thursday morning.

The New York-based company manages investments across multiple asset classes, such as private equity, energy, real estate and credit.

"We think KKR is the cheapest alternative asset manager under both (1) price to normalized FCF, and (2) sum-of-the-parts - which implies the stock should have more relative upside than peers when realizations/ENI results improve," the firm wrote in an analyst note.

Unlike other publicly traded partnerships, KKR now pays out a smaller dividend distribution and reinvests a much higher percentage of free cash flow back into its balance sheet, Credit Suisse noted. KKR may also opportunistically repurchase stock.

"We think KKR's model will compound both earnings and its book value at a high growth rate over the cycle - which is key to our long-term thesis," the firm added.

Shares of KKR closed at $12 on Wednesday.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C- on the stock.

The primary factors that have impacted the rating are mixed. Among the primary strengths of the company is its expanding profit margins over time.

But the team also finds weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: KKR

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