KKR (KKR) PT Raised to $126 at Jefferies

Jefferies analyst Gerald O'Hara raised the price target on KKR (NYSE: KKR) to $126.00 (from $113.00) while maintaining a Buy rating.

The analyst commented: "Our 2Q24 DE/shr est decreased marginally to $1.08 from $1.10, and FRE/share also decreased, to $0.81 from $0.84. The decreases were driven by lower outlook for mgmt fees ($852M vs $866M prev est) as well as lower cap markets rev ($193M vs $213M prev est). Broader middlemarket deal activity remained subdued during the qtr; however, we expect deal volume to pick up in 2H24, including the Telecom Italia deal, which closed on July 1, and to contribute $30-50M in cap mkts fees. We expect ROE in the ins segment to remain on the lower end of the 14-15% guided range this qtr and the remainder of '24. As a result, we are lowering our 2Q24 op earnings/shr from $1.20 to $1.17, and FY24 from $4.97 to $4.87. Intra-qtr monetization activity was $500M, split 80/20 across gross carried interest and realized investment income (vs our prev est of $463M). We are now estimating $524M for the whole qtr. We continue to expect a meaningful step up in monetization as deal volumes accelerate in the back half of this year."

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