Kohlberg Kravis Roberts
KKR
$106.41
-3.02%
KKR & Co. Inc. is a global alternative asset manager with $723.2 billion in total managed assets, operating across private equity, credit, infrastructure, and insurance through its acquisition of Global Atlantic. As one of the largest and most diversified alternative asset managers, KKR competes with peers like Blackstone and Apollo, leveraging its scale and multi-strategy platform to capture growth in private markets. The current investor narrative centers on the firm's expansion into AI infrastructure, exemplified by the $10 billion Helix Digital Infrastructure launch, and the potential for private credit to enter 401(k) plans, which could significantly boost fee income. However, the stock has faced volatility due to market-wide concerns about high valuations and the sustainability of AI-related investments, as well as a recent 22% decline over the past year despite strong recent momentum.…
KKR
Kohlberg Kravis Roberts
$106.41
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Investment Opinion: Should I buy KKR Today?
Based on the analysis, KKR is rated a Buy. The consensus analyst recommendation is 'Buy' with an average target price of $126.63, implying a 16.5% upside. The thesis is that KKR's strong revenue growth, strategic positioning in AI infrastructure, and the private credit 401(k) catalyst will drive earnings growth, justifying the forward PE of 14.7x, which is at a discount to the industry.
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KKR 12-Month Price Forecast
The AI assessment is bullish, driven by strong revenue growth, attractive forward valuation, and positive analyst sentiment. However, confidence is medium due to the high trailing PE and market volatility. The stock's forward PE suggests the market expects significant earnings growth, which is plausible given the company's strategic positioning. If KKR can deliver on its growth promises, the stock is likely to appreciate toward the average target. Key developments to watch include quarterly earnings, progress on AI infrastructure projects, and regulatory decisions on private credit in 401(k) plans. A downgrade to neutral would occur if revenue growth falls below 20% or if the forward PE expands above 20x.
Wall Street consensus
Most Wall Street analysts maintain a constructive view on Kohlberg Kravis Roberts's 12-month outlook, with a consensus price target around $127.98 and implied upside of +20.3% versus the current price.
Average Target
$127.98
0 analysts
Implied Upside
+20.3%
vs. current price
Analyst Count
—
covering this stock
Price Range
$105 - $166
Analyst target range
KKR is covered by 20 analysts, with a consensus recommendation of 'Buy' and a mean rating of 1.59 (where 1 is Strong Buy and 5 is Sell). The average target price is $126.63, implying an upside of 16.5% from the current price of $108.68. The distribution of ratings is bullish, with no Sell ratings and a majority of Outperform or Buy ratings, as seen in recent actions from Evercore ISI, BMO Capital, RBC Capital, and Barclays, all maintaining positive stances. The target price range spans from $105.00 to $147.00, with the low target suggesting a modest 3.4% downside, while the high target implies a 35.3% upside. The wide spread of $42 indicates significant uncertainty about KKR's future performance, but the consensus leans bullish, reflecting confidence in the company's growth trajectory. Recent ratings have been stable, with no downgrades, and the positive sentiment is supported by the firm's strategic initiatives in AI infrastructure and private credit expansion.
Bulls vs Bears: KKR Investment Factors
KKR presents a compelling growth story with strong revenue acceleration, strategic expansion into AI infrastructure, and a favorable regulatory tailwind from private credit in 401(k) plans. However, the stock's high trailing valuation, elevated leverage, and high beta introduce significant risks. Currently, the bull case is stronger, supported by analyst consensus and forward valuation discounts, but the key tension lies in whether the company can deliver the expected earnings growth to justify its premium. If growth decelerates or market sentiment turns against high-multiple financials, the stock could face substantial downside.
Bullish
- Revenue Growth Accelerating at 31% YoY: Q1 2026 revenue surged to $4.0 billion, a 31% increase year-over-year, driven by strong performance in both asset management ($1.19B) and insurance ($2.29B). This acceleration from $3.05B in Q1 2025 indicates robust demand for KKR's alternative investment products and insurance solutions.
- Forward PE at 33% Discount to Industry: With a forward PE of 14.7x versus the industry average of 22x, KKR trades at a significant discount, implying the market expects substantial earnings growth. This valuation gap suggests potential upside if the company meets earnings expectations.
- Analyst Consensus Strong Buy with 16.5% Upside: 20 analysts rate KKR a 'Buy' with a mean rating of 1.59, and the average target price of $126.63 implies a 16.5% upside from the current price of $108.68. No Sell ratings and recent positive actions from Evercore ISI, BMO, RBC, and Barclays reinforce bullish sentiment.
- Strategic Expansion into AI Infrastructure: KKR launched Helix Digital Infrastructure with $10 billion backing, positioning the firm to capitalize on the growing AI infrastructure demand. This initiative could drive significant long-term fee income and asset growth, aligning with industry trends.
Bearish
- Trailing PE at 131% Premium to Industry: KKR's trailing PE of 50.8x is 131% above the industry average of 22x, indicating that the stock is priced at a premium based on historical earnings. This could lead to valuation compression if growth slows or market sentiment shifts.
- Stock Down 22.4% Over Past Year: Despite recent momentum, KKR's stock has declined 22.4% over the last 12 months, underperforming the S&P 500's 18.6% gain. This underperformance reflects persistent market concerns about high valuations and AI investment sustainability.
- High Beta of 1.786 Amplifies Market Volatility: With a beta of 1.786, KKR is significantly more volatile than the market, making it susceptible to broader market downturns. This could lead to larger drawdowns in adverse conditions, as evidenced by the max drawdown of -44.87%.
- Elevated Debt-to-Equity Ratio of 1.77: KKR's debt-to-equity ratio of 1.77 indicates a high level of leverage, which increases financial risk. This leverage could strain cash flows if interest rates remain high or if investment performance falters.
KKR Technical Analysis
KKR's price trend over the past year has been a pronounced downtrend, with the stock down 22.4% over the last 12 months, currently trading at $108.68, which is 71.5% of its 52-week range (between $82.67 and $152.10). This positioning near the lower end of the range suggests the stock is in a recovery phase from its lows, but it remains well below its highs, indicating that investor sentiment is still cautious. The 52-week low of $82.67 was set in March 2026, and the stock has since rebounded, but it faces significant overhead resistance near the $115-$120 area.
Beta
1.79
1.79x market volatility
Max Drawdown
-44.9%
Largest decline past year
52-Week Range
$83-$152
Price range past year
Annual Return
-23.7%
Cumulative gain past year
| Period | KKR Return | S&P 500 |
|---|---|---|
| 1m | +4.9% | +2.0% |
| 3m | +17.5% | +1.0% |
| 6m | +11.3% | +11.8% |
| 1y | -23.7% | +18.1% |
| ytd | -17.4% | +11.7% |
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KKR Fundamental Analysis
KKR's revenue has shown strong growth, with the most recent quarter (Q1 2026) reporting revenue of $4.0 billion, a 31% increase year-over-year, driven by both asset management and insurance segments. The company's revenue trajectory has been accelerating, with sequential growth from $3.05 billion in Q1 2025 to $4.0 billion in Q1 2026, and the asset management segment contributed $1.19 billion in revenue, while insurance brought in $2.29 billion. This growth is supported by a 31% YoY increase in revenue, indicating robust demand for KKR's alternative investment products and insurance solutions.
Quarterly Revenue
$4.0B
2026-03
Revenue YoY Growth
+31.0%
YoY Comparison
Gross Margin
99.5%
Latest Quarter
Free Cash Flow
$6.9B
Last 12 Months
Revenue & Net Income Trends (2 Years)
Revenue Breakdown
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Valuation Analysis: Is KKR Overvalued?
Given that KKR's net income is positive, the primary valuation metric selected is the price-to-earnings (PE) ratio. The trailing PE is 50.8x, while the forward PE is 14.7x, implying that the market expects significant earnings growth, with the forward PE suggesting a 71% discount to trailing earnings. This gap reflects the market's anticipation of a substantial increase in earnings, likely driven by the expansion of fee-earning AUM and insurance operations. Compared to the industry average PE of 22x, KKR's trailing PE of 50.8x represents a 131% premium, but the forward PE of 14.7x is at a 33% discount, indicating that the market is pricing in a normalization of earnings. Historically, KKR's PE has ranged from 6.8x to 282.9x over the past five years, with the current trailing PE near the higher end, suggesting that the stock is trading at a premium to its own historical average, which may be justified by its growth prospects.
PE
50.8x
Latest Quarter
vs. Historical
High-End
5-Year PE Range 7x~63x
vs. Industry Avg
N/A
Industry PE ~N/A*
EV/EBITDA
23.6x
Enterprise Value Multiple
Investment Risk Disclosure
Financially, KKR's high debt-to-equity ratio of 1.77 and interest expenses of $752 million in Q1 2026 expose the firm to interest rate risk, especially if rates remain elevated. The company's net margin of 12.3% is relatively thin, and operating margin is just 2.4%, indicating that profitability is sensitive to investment performance and fee income. Additionally, the negative PEG ratio of -1.84 suggests that the market expects earnings to decline, which could lead to earnings disappointment and stock price volatility.