Barclays Cuts KKR Price Target to $127 on Lower BDC Earnings Forecast
Barclays lowered KKR & Co.’s price target to $127 from $136, maintaining an Overweight rating due to reduced business development company earnings forecasts and uncertain AI impacts on portfolio flows. In Q4 2025, KKR recorded $28 billion in new capital, drove full-year fundraising to a record $129 billion, and raised its annual dividend to $0.78.
1. Analyst Price Target Reduction
On March 2, Barclays analyst Benjamin Budish trimmed KKR & Co.’s 12-month price target from $136 to $127 while maintaining an Overweight rating, reflecting updated sector estimates for alternative asset managers.
2. Updated Sector Assumptions
The revision stems from lower projected flows and realizations in the business development company segment and ongoing uncertainty over artificial intelligence’s ultimate impact on portfolio company performance.
3. Q4 and 2025 Financial Highlights
KKR reported fee-related EPS of $1.08 and total operating EPS of $1.42 in Q4 2025, raised $28 billion of new capital that quarter, reached a record $129 billion in full-year fundraising, saw its credit platform secure $68 billion, and boosted its annual dividend from $0.74 to $0.78.