KKR Should I Buy
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Given the investor's beginner status, long-term strategy, and available capital, KKR is not a strong buy at this moment. While there are positive catalysts such as hedge fund buying and a strategic renewable energy partnership, the technical indicators are bearish, options data suggests cautious sentiment, and recent financial performance shows declining margins and net income. Analysts remain optimistic with high price targets, but the current price trend and valuation concerns make it prudent to hold off on buying for now.
The technical indicators for KKR are bearish. The MACD is below zero and negatively contracting, the RSI is neutral at 28.672, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading below the pivot level of 106.474, with key support at 99.327 and resistance at 113.621.
Hedge funds are aggressively buying, with a 604.51% increase in buying activity last quarter. KKR's strategic partnership with HMC Capital to invest $603 million in renewable energy projects in Australia is a positive long-term growth driver. Analysts project a 14% earnings growth, justifying a 55% upside potential.
The private credit market faces renewed uncertainty due to AI pressures on software companies, which could impact KKR's portfolio. Financial performance in Q4 2025 showed declining net income (-1.78% YoY), EPS (-1.69% YoY), and gross margin (-8.69% YoY). The stock has declined 22% year-to-date, reflecting broader investor caution.
In Q4 2025, KKR's revenue increased significantly by 58.97% YoY to $7.51 billion. However, net income dropped by 1.78% YoY to $1.11 billion, and EPS declined by 1.69% YoY to $1.16. Gross margin also decreased to 55.46%, down 8.69% YoY.
Analysts remain optimistic with multiple 'Buy' and 'Outperform' ratings. Price targets range from $125 to $190, with firms like Morgan Stanley and Oppenheimer highlighting attractive entry points and diversified holdings. However, some firms have lowered targets post-Q4 earnings, reflecting cautious sentiment.
