How is KKR & Co (KKR) Positioned Against AI Risk for Portfolio Companies

KKR & Co. Inc. (NYSE:KKR) is one of the 10 best financial stocks with highest upside potential.

On March 2, Barclays reduced the firm’s price target on KKR & Co. Inc. (NYSE:KKR) from $136 to $127. The firm maintained an Overweight rating on the shares, which still yields an adjusted upside of more than 51%.

Source: PEXELS

Prior to that, on February 6, Chris Kotowski from Oppenheimer decreased the firm’s price target on KKR & Co. Inc. (NYSE:KKR) to $187 from $190, which leads to a revised upside potential of almost 123% at the prevailing level. The analyst also maintained his Outperform rating on the stock.

Kotowski noted that the stock exhibited a sharp 5.4% decline on the quarterly announcement day, despite posting solid results. Trading volumes observed during the day were 3.5 times higher than the average daily trading volume for the stock. The analyst viewed this price movement as an investor overreaction, which was largely driven by concerns related to private credit portfolios’ exposure towards the software segment. With no fundamental issues across the business, Kotowski reflected on KKR’s software exposure, which is just 7% of its total assets under management. This is significantly lower than the average for diversified holdings space.

KKR & Co. Inc. (NYSE:KKR) is a global private equity and real estate investment firm that specializes in direct and fund-of-fund investments. The company focuses on different types of investments across various asset classes. These include LBOs, MBOs, special situation acquisitions, mature investments, distressed investments, turnarounds, and more.

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