KKR Financial Corp. (KFN)

[johnsyn]

Compass Point Reiterates a 'Buy' on KKR Financial (KFN); Q2 Review

3:02 PM 7/27/2012 - StreetInsider

Compass Point reiterates a 'Buy' on KKR Financial (NYSE: KFN) price target of $12.00 (from $14.00).

Analyst, Jason Stewart, said, "KFN reported 2Q12 net income per share of $0.39, $0.04 short of our $0.43 estimate and $0.02 shy of the street's $0.41 consensus. While the company continues to deliver consistent quarterly results on a cash and operating basis, one time items and significant liquidity balances kept earnings from tracking our projections. KFN has made considerable progress diversifying away from being solely focused on investing in syndicated credit to a specialty finance company with considerable earnings power. However, it is clear that the investments in natural resources (12% of average net equity) have impeded near term earnings progression, though they are still expected to deliver long term value."

"As KFN's investment portfolio becomes increasingly diverse, we believe cash distributions and consistent bottom line results will become the primary valuation drivers of shares."

For an analyst ratings summary and ratings history on KKR Financial click here. For more ratings news on KKR Financial click here.

Shares of KKR Financial closed at $9.03 yesterday, with a 52 week range of $6.68-$9.70.