KKR (KKR) Chooses Direct Lenders Over Banks for Karo Healthcare Acquisition

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Apr 23, 2025
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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

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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.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.