Quick Highlights:
- KKR utilizes direct lenders led by Apollo Global for its €1.1 billion Karo Healthcare acquisition.
- Analysts see a 29.64% upside potential for KKR, with a target price averaging $141.35.
- GuruFocus projects a 51.93% downside based on its GF Value estimate.
In an innovative financial strategy, KKR (NYSE: KKR) is opting to work with direct lenders, spearheaded by Apollo Global Management (NYSE: APO), to back its €1.1 billion purchase of Karo Healthcare. By circumventing the traditional banking syndicate, KKR has effectively leveraged a blend of junior and senior debt, positioned at an interest margin of 475 basis points over Euribor.
Wall Street Analysts Forecast
According to 18 analyst price targets, the average target price for KKR & Co Inc (NYSE: KKR) sits at $141.35, with projections ranging from a high of $194.00 to a low of $114.00. This average suggests a potential upside of 29.64% from the current stock price of $109.03. For a deeper dive into these figures, explore the detailed estimates on the KKR & Co Inc (KKR, Financial) Forecast page.
Moreover, consensus from 21 brokerage firms assigns KKR an average recommendation score of 1.8, which denotes an "Outperform" rating. The recommendation scale ranges from 1 to 5, where 1 stands for Strong Buy and 5 indicates Sell, positioning KKR favorably among analysts.
GuruFocus's Perspective
On the valuation front, GuruFocus estimates KKR's GF Value at $52.41 for the next year, forecasting a downside of 51.93% from its current trading price of $109.03. The GF Value represents GuruFocus's calculation of the fair market price, derived from historical trading multiples, past business growth, and anticipated future performance metrics. For a comprehensive breakdown, visit the KKR & Co Inc (KKR, Financial) Summary page.