New York-based KKR & Co. Inc. (KKR) is a private equity and real estate investment firm specializing in direct and fund of fund investments. Valued at a market cap of $111.2 billion, the company specializes in acquisitions, leveraged buyouts, management buyouts, credit special situations, growth equity, mature, mezzanine, distressed, turnaround, lower middle market, and middle market investments. 

This asset management company has outpaced the broader market over the past 52 weeks. Shares of KKR have surged 21.4% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11.9%. However, on a YTD basis, the stock is down 15.3%, lagging behind SPX’s marginal decline. 

Zooming in further, KKR has also outperformed the Invesco Global Listed Private Equity ETF’s (PSP) 2.4% rise over the past 52 weeks. However, it has underperformed the ETF’s slight downtick on a YTD basis. 

On May 1, shares of KKR closed up marginally after its Q1 earnings release. On the downside, the company reported revenue of $3.1 billion, marking a steep 67.8% decline from the year-ago quarter. A sharp drop in insurance revenues due to one-time issues in its insurance segment affected its top line. Nonetheless, on the upside, its fee-related earnings rose 23% year-over-year to $822.6 million, supported by strong growth in management fees as well as higher transaction and monitoring fees. Moreover, the insurance segment’s net investment income advanced 16.3% from the year-ago quarter. Total operating earnings also improved, increasing 15.6% year-over-year, while adjusted net income rose 18.6% to $1.15 per share. Additionally, its assets under management (AUM) grew 15% compared to the same period last year, reflecting strong investor inflows. 

For the current fiscal year, ending in December, analysts expect KKR’s EPS to grow 14.1% year over year to $4.45. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in three of the last four quarters, while missing on another occasion. 

Among the 18 analysts covering the stock, the consensus rating is a “Strong Buy” which is based on 15 “Strong Buy,” one “Moderate Buy,” and two “Hold” ratings. 

This configuration is slightly more bullish than two months ago, with 14 analysts suggesting a “Strong Buy” rating. 

On May 4, Evercore Inc. (EVR) analyst Glenn Schorr maintained a “Buy” rating on KKR and set a price target of $130, which indicates a 3.8% potential upside from the current levels. 

The mean price target of $139.89 represents an 11.7% premium from KKR’s current price levels, while the Street-high price target of $189 suggests an ambitious upside potential of 50.9%.