Blue Owl Capital Receives Strong Buy Rating Upgrade from UBS

By Don Francis, Editor
April 3, 2024 7:43 AM UTC
Blue Owl Capital Receives Strong Buy Rating Upgrade from UBS

UBS's Brennan Hawken upgraded their rating on Blue Owl Capital (NYSE: OWL) from Hold to Strong Buy on 2024/04/03. The analyst also raised their price target by 22.2% from $18 to $22.

In their report, Hawken highlighted several factors that led to the increased price target for Blue Owl Capital. Firstly, the analyst commended the company's "resilient" fundraising efforts, which have likely contributed to its financial strength and growth potential. Additionally, the successful listing of institutional private business development companies was seen as a positive development for Blue Owl Capital.

Another factor mentioned by Hawken was the solid start to the next vintage by GP Solutions, a subsidiary of Blue Owl Capital. This indicates favorable prospects for the company's direct lending and real estate ventures.

While acknowledging potential challenges in achieving the management's goal of a $1 dividend by 2025, Hawken expressed confidence in the overall strength of Blue Owl Capital's business model.

However, it's important to note that on the same day, April 2, 2024, the analyst made a different move for Blackstone Inc. Hawken lowered the price target for Blackstone Inc. by -3.6%, from $140 to $135, and downgraded the stock from Strong Buy to Hold. This suggests a less optimistic outlook for the company.

According to the analyst rating data, 100% of top-rated analysts currently rate Blue Owl Capital as a Strong Buy or Buy. No analysts see it as a Hold, and there are no recommendations to sell the stock.

In terms of performance, Blue Owl Capital has shown positive growth. Since the release of their last quarterly report on December 31, 2023, the stock price has increased by 24.2%. Looking at the year-over-year performance, the stock is up 68.3%. These figures indicate a favorable trend for Blue Owl Capital, outpacing the broader market as the S&P 500 has only risen by 26.2% during the same period.

UBS analyst Brennan Hawken, who provided the upgraded rating and increased price target for Blue Owl Capital, is ranked by WallStreetZen in the top 26% out of 4,530 Wall Street analysts. With an average return of 2.3% and a win rate of 46.1%, Hawken specializes in the Energy and Financial Services sectors.

Blue Owl Capital Inc., founded in 2020 and headquartered in New York, NY, offers lending products to middle market companies, large alternative asset managers, and corporate real estate owners and tenants.

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