KKR Reports Record Q3 Adjusted Profit as Analysts Raise Targets
KKR delivered record third-quarter adjusted earnings of $1.78 per share, beating consensus estimates. The strong results prompted several Wall Street analysts to increase their price targets on the asset manager.
KKR & Co. Inc. recently reported record third-quarter financial results that exceeded Wall Street estimates. Adjusted earnings per share reached $1.78, beating analyst consensus forecasts, which were tracked by LSEG at $1.59 and cited by MarketBeat at $1.58. Revenue came in at $4.56 billion, surpassing analyst projections of $2.66 billion despite falling 17.4% year over year. Adjusted net income reached 1.6 billion US dollars, lifted by management fees, fundraising, and investment realizations.
The alternative asset manager raised 25 billion US dollars during the quarter, increasing total assets under management to more than 800 billion US dollars, with Yahoo Finance noting a total of $804.4 billion. KKR expects to distribute more than 40 billion US dollars to clients in 2026, which would surpass its previous annual record by over 50 percent. Management also noted that the pending USI transaction was excluded from the quarter's figures but is expected to contribute about 3.3 billion US dollars in after-tax proceeds and roughly 2 billion US dollars in adjusted net income upon closing.
The strong quarterly performance prompted multiple Wall Street analysts to lift their price targets. Piper Sandler maintained an Overweight rating and raised its price target to $125.00 from $121.00, implying a 25.24% upside from the stock's current price. Morgan Stanley increased its target to $140 from $138 with an Overweight rating, while Wells Fargo raised its target on November 10 to $105 from $97 with an Equal-Weight rating. According to MarketBeat, the consensus price target stands at $123.32.
Despite positive quarterly results, KKR shares have struggled over a broader horizon. Yahoo Finance reported that the stock has dropped 16% over the past 52 weeks and is down 20.9% year-to-date, trailing the S&P 500 Index. Following the earnings release, KKR shares advanced 1.7%, and on Wednesday, the stock opened at $99.81 on US markets while trading at 91.25 euros on Lang & Schwarz in European hours.