KKR & Co. (NYSE:KKR) gained more than 5% on Tuesday after the company beat Q4 revenue expectations in tough conditions. Revenue came in at $2.53 billion, significantly better than the Street estimate of $1.44 billion. EPS was $0.09, missing the Street estimate of $0.85.
The insurance operations are performing better than anticipated (and could generate elevated earnings in the near term), while FRE continues to be solid.
Analysts at Deutsche Bank expect a mid-teens CAGR for FRE growth over the next 3 years. They remain optimistic about the company's private wealth buildout over the long term (though it remains a work in progress and requires investment).
The analysts also see the company as especially well positioned within the alternative manager sector to deploy capital across their asset classes at favorable valuations.