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Bank of America is bullish about alternative asset manager stocks because they have underperformed in 2022 while their fee-related earnings grew, and their valuation range tightened.
“Their valuation range fell back to pre-CCorp conversion level. This development was We are more bullish on fast-growing companies (NYSE:OWL) and the most offensive income statements (NYSE:KKRCraig Siegenthaler, an analyst, said that it was “(? )”.
These are the five Buy-rated stocks by BofA in this space:
- Blue Owl Capital (OWL: “We believe OWL’s value is greatly undervalued because it has a lack of long-only ownership relative its fast and defensive income stream.”
- KKR (KKR: We think KKR’s growth is undervalued and expect its offensive income statements drivers to recover over the next few quarters.”
- Interactive Brokers: (IBKR). “Valuation is not too high for a business growing its account base organically at 20%-40%. Two large wins as introducing brokers have given us high visibility into the near-term growth momentum.
- Focus Financial Partners (FOCS): “We are bullish on FOCS into a recovery after it generated near record M&A activity last year and was the best performer in our coverage in the last bull market.”
- Intercontinental Exchange: “We believe ICE has fallen out-of-favor. We think markets are undervaluing the potential growth in mortgage tech and the synergies resulting from its acquisition of BKI.”
Learn why Mike Zaccardi, a SA contributor, sees upside to Blue Owl (OWL), and why The Value Puzzle thinks KKR (KKR), might be a surprise recipient of a rocky 2023.