KKR (KKR) is positioned to benefit from secular tailwinds across private credit, infrastructure, private wealth, and insurance, potentially backing the company's double-digit growth outlook, Morgan Stanley said in a Wednesday note.

The recent tariff de-escalation with China and improving macro conditions can lift market confidence in a possible capital markets recovery and eventually boost private markets, the investment firm said. KKR is set to benefit from this given its diverse franchise across end markets and client channels, Morgan Stanley analysts said.

Morgan Stanley said "while risks to growth remain given tariff negotiations remain fluid, we take comfort from KKR's 26% AUM skew to real assets, that's battle tested through cycles." The investment firm also raised its 2025 and 2026 EPS estimates for the company.

Morgan Stanley upgraded KKR to overweight from equal-weight, and raised its price target to $150 from $120.

KKR shares were up 2% in recent trading.

Price: 129.28, Change: +2.38, Percent Change: +1.88