Citi maintains a "Buy" rating on KKR & Co Inc (KKR), despite adjusting its 2025-2027 EPS estimates downward to $5.77, $7.35, and $8.68, respectively, from previous estimates of $6.11, $7.59, and $8.92. This adjustment follows KKR's Q4 2024 results, which showed in-line performance but a lowered Sustainable & Responsible Investing (SRE) guidance. The report highlights KKR's robust deployment and monetization activities, with $23 billion deployed in Q4 2024 and expectations for increased activity in 2025. Fundraising remains strong, driven by credit and private equity, with a $300 billion target for 2024-2026. KKR's strategic holdings are also performing well, with increased stakes and a projected earnings boost to $350 million by 2026.
Citi's investment thesis is supported by KKR's diverse business mix and growth opportunities in private wealth, APAC, infrastructure, and strategic holdings. The report notes, "We continue to like the LT story given its business mix and opportunity set." However, near-term challenges persist in the insurance segment, with ROE declining to 10.9% due to balance sheet changes.
KKR's current stock price is $149.99, reflecting a 0.46% increase from the previous close.