KKR & Co. Inc. (NYSE: KKR) has been one of the standout performers in the alternative asset management space, though the stock recently cooled off. Shares trade near $119/share, down from last year’s highs around $170, as slower private equity deal activity and cautious investor sentiment weighed on valuations. Still, analysts remain constructive on KKR’s long-term trajectory thanks to its growing fee-based earnings and diversified investment engine.
Recently, KKR agreed to acquire the remaining minority stake in Global Atlantic Financial Group, a deal announced in November 2023 and completed in early 2024. This transaction gave KKR full ownership of the business, deepening its presence in insurance and retirement solutions. The firm also reported record assets under management, reflecting continued expansion in private credit and infrastructure. These developments reinforce KKR’s strategy of building stable, fee-based income streams that can perform well across different market cycles.
This article explores where Wall Street analysts believe KKR’s stock could trade by 2027. We’ve reviewed consensus targets and TIKR’s Guided Valuation Model to outline what the next two years could look like for investors following one of the most influential names in private markets.
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Analyst Price Targets Suggest Meaningful Upside
KKR trades near $119/share today. The average analyst price target is $157/share, which points to about 32% upside from current levels. Forecasts show a tight range, suggesting consistent confidence across Wall Street:
- High estimate: ~$188/share
- Low estimate: ~$139/share
- Median target: ~$155/share
- Ratings: 12 Buys, 6 Outperforms, 3 Holds
For investors, that kind of potential upside signals meaningful optimism. Analysts believe KKR’s growing credit and infrastructure platforms, combined with steady fundraising momentum, can keep earnings compounding even in a slower private equity cycle. The shift toward recurring management fees is also improving visibility and helping reduce earnings volatility over time.
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KKR: Growth Outlook and Valuation
The company’s fundamentals remain strong and well balanced:
- Revenue is projected to grow about 21% annually through 2027
- Operating margins are expected to stay healthy around 73%
- Shares trade at roughly 17× forward earnings
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using a 19.5× forward P/E suggests around $190/share by 2027
- That implies roughly 60% total return, or about 24% annualized
For investors, these figures point to a business still in a strong compounding phase. KKR’s growing mix of recurring management fees and long-term capital helps provide consistent earnings growth and valuation support. In a market that often favors stability, KKR’s diversified platform stands out as both dependable and scalable.
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What’s Driving the Optimism?
KKR continues to benefit from powerful structural trends in private markets. Its expansion in credit, infrastructure, and insurance-backed capital is providing stable, recurring revenue that helps smooth performance across economic cycles. These areas are seeing strong institutional demand, as investors increasingly turn to private credit and real assets for higher returns.
Management has also built a track record of disciplined capital allocation and steady fee growth. For investors, these strengths point to a business that can keep compounding even through market volatility. The mix shift toward perpetual capital means more predictable earnings and less reliance on transaction-driven profits.
Bear Case: Market Sensitivity and Valuation
Even with these positives, KKR’s earnings still depend on private market sentiment. If deal activity slows or fundraising momentum fades, near-term earnings growth could soften. Rising interest rates also create headwinds for valuations, especially in private equity and real estate segments.
For investors, the risk is that higher-for-longer rates or weaker capital markets could limit multiple expansion. While KKR’s diversification helps cushion downside, the stock may consolidate in the short term if asset growth moderates or performance fees slow.
Outlook for 2027: What Could KKR Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model suggests KKR could trade near $190/share by 2027. That would represent about a 60% total return, or roughly 24% annualized gains from current levels around $119/share.
This forecast already assumes continued asset growth and stable margins. For investors, stronger-than-expected fundraising or faster expansion in private credit could drive even greater upside. But even under base-case assumptions, KKR appears well positioned to deliver meaningful compounding supported by durable, recurring earnings growth.
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