Bank of America Cuts KKR Price Target to $160; Shares Slide on Credit Fears
Bank of America lowered its KKR price target to $160 from $164 and maintained a Buy rating after the firm’s Q4 asset-management segment generated $1.64B in revenue versus a $1.78B consensus. KKR shares are down over 22% YTD due to private-credit redemption fears after Blue Owl halted redemptions.
1. Analyst Revises Price Target
Bank of America lowered its KKR price target to $160 from $164 while retaining a Buy rating, citing revised EPS estimates across its coverage of brokers, asset managers and exchanges following fourth-quarter results.
2. Q4 Performance and Estimates
KKR’s asset-management segment recorded $1.64 billion in fourth-quarter revenue versus a $1.78 billion consensus, and total revenue rose to $5.74 billion from $3.26 billion a year ago; co-CEOs highlighted record 2025 fee-related earnings, adjusted net income per share, capital raised and invested.
3. Market Reaction and Credit Concerns
KKR shares have slipped over 22% year-to-date as private-credit redemption fears spread through the sector, intensified by Blue Owl’s decision to halt fund redemptions and mark-to-model valuation uncertainties.
4. Long-Term Outlook
Management underscored confidence in the firm’s long-term positioning, reinforced by the acquisition of Arctos Partners—a sports-investing and secondary capital platform that expands KKR’s alternative asset capabilities.