KKR Shares Rise After Earning Goldman’s Top Rating
Shares of KKR (KKR) surged Thursday after Goldman Sachs gave the stock of the legendary buyout firm its top rating.
KKR’s stock price jumped 4.04% to $29.13 after Goldman Sachs placed the firm on its “conviction” stocks list, according to published reports. Higher than an ordinary buy rating, a conviction stock is one Goldman strongly believes has upward growth potential.
A ripening investment portfolio and upcoming fund-raising campaigns will lead to “accelerated earnings growth,” wrote Goldman analyst Alexander Blostein.
Arguing KKR is undervalued right now, the Goldman Sachs analyst has raised his price target to $35, or roughly 20% higher than where it currently trades.
KKR has launched an aggressive campaign to raise money for its funds from retail investors overseas.
The buyout firm on Thursday announced plans for its first listed fund in Australia, a $560 million credit fund.
The new fund will lend to companies and will offer investors annual dividend payments ranging from 4% to 6%, with an 8% targeted total return.
KKR reported a 24% jump in management fees during the second quarter, to $287 million.
“Given our integrated business model, the ongoing development and diversification of our firm, and our growing fundraising pipeline, we feel well positioned to deliver strong results for our shareholders,” said Henry R. Kravis and George R. Roberts, co-chairmen and co-chief executive officers, in a press statement on the firm’s earnings.