On Friday, Goldman Sachs (NYSE:GS) maintained a Buy rating on shares of KKR & Co. Inc. (NYSE:KKR), with a steady price target of $119.00.
The financial institution's outlook follows KKR's announcement of an intra-quarter monetization income exceeding $500 million for the second quarter of 2024, up to June 20th. The firm highlighted that around 80% of the quarter-to-date monetization, amounting to over $400 million, was derived from realized performance income. The remaining 20%, over $100 million, was sourced from realized investment income.
KKR's recent performance has been bolstered by a mix of secondary sales, strategic transactions, dividends, and interest income. These factors have primarily driven the company's realizations during the quarter. Goldman Sachs noted that the updated income guide suggests a slight advantage over the Visible Alpha Consensus Data estimates, which predicted $489 million for the same period.
The revised forecast for the second quarter marks a significant increase from the first quarter of 2024, where KKR had anticipated monetization income to be upwards of $400 million. However, it was uncertain at that time whether all of this would materialize within the second quarter.
Goldman Sachs expressed optimism regarding the latest figures, indicating that monetization activity at KKR has remained robust compared to the lower levels experienced in late 2022 and early 2023. The firm anticipates that while recovery to normalized levels may take time, the current data point is a positive sign of elevated activity.
In other recent news, KKR & Co and Carlyle Group (NASDAQ:CG) Inc are the final contenders for Discover Financial's U.S. student loan portfolio, valued at approximately $10 billion. In parallel, KKR & Co, CrowdStrike Holdings (NASDAQ:CRWD) Inc, and GoDaddy (NYSE:GDDY) Inc are set to join the S&P 500 index, marking a notable shift in the index's composition.
Furthermore, KKR and Global Infrastructure Partners (GIP) are leading a $25 billion infrastructure investment initiative in the Indo-Pacific region, underlined by a focus on sustainable and green projects.
Additionally, KKR has acquired a majority stake in Agiloft, a leader in contract lifecycle management (CLM) software. This acquisition is expected to support Agiloft's growth and market share expansion, customer acquisition, and product innovation.
These recent developments highlight the active role of KKR in various sectors, ranging from financial services and infrastructure development to technology.
InvestingPro Insights
Amidst the optimistic view from Goldman Sachs on KKR & Co. Inc. (NYSE:KKR), real-time data from InvestingPro provides further context to the company's financial landscape. With a robust market capitalization of $97.66 billion, KKR showcases a Price/Earnings (P/E) ratio of 23.76, reflecting investor sentiment on its earnings capacity. Notably, the company has experienced a remarkable revenue growth rate of 323.59% over the last twelve months as of Q1 2024, underscoring its dynamic performance in the Capital Markets industry.
InvestingPro Tips indicate that KKR has not only maintained its dividend payments for 15 consecutive years but has also raised its dividend for 4 consecutive years, signaling a commitment to shareholder returns. Additionally, the stock has generated a high return over the last year, with a price total return of 99.01%. For those looking to delve deeper into KKR's financials and performance metrics, InvestingPro offers additional tips that can be accessed through their platform. With the use of coupon code PRONEWS24, readers can avail themselves of an additional 10% off a yearly or biyearly Pro and Pro+ subscription, gaining access to an extended array of insights that could guide investment decisions.
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