Piper Sandler 'Positive on Blue Owl Capital (OWL) Despite Recent Volatility'; PT Lowered

Piper Sandler analyst Crispin Love lowered the price target on Blue Owl Capital (NYSE: OWL) to $21.00 (from $27.00) while maintaining an Overweight rating.

The analyst commented: "Two stocks worth a look: OWL and ABL. Both Blue Owl and Abacus are two names that we remain positive on despite recent volatility and sharp stock moves. While Blue Owl is down meaningfully in the last three months we expect forward earnings impacts from tariffs and softer deal activity to be muted compared to private equity heavy peers. This is due to OWL's 100% management fee centric business model that is more predictable. However, as we stated above credit will likely be under scrutiny but we point to OWL's 11 bps annualized historical default rates and LTVs in the 30-40% range.

During its recent investor day, management introduced 5-year targets that include doubling AUM and growing key metrics at 20%+ CAGRs. We continue to expect OWL to execute across its core growth drivers, scale recent acquisitions, and expand its geographic and product footprint. While recent volatility could push out broader deal activity and has impacted the stock meaningfully in recent days, we are confident in Blue Owl’s management fee centric model that is not dependent on deal activity or performance revenues to be successful and exhibit peer leading growth over the long-term."

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