Citizens JMP Reiterates Market Outperform Rating on Blue Owl Capital Corp. (OBDC)

Citizens JMP analyst Brian McKenna reiterated a Market Outperform rating and $17.00 price target on Blue Owl Capital Corp. (NYSE: OBDC).

The analyst commented, “Given continued strength in underlying fundamentals, we believe it is just a matter of time until OBDC's valuation closes the gap with other high-quality peers. As we have written about at length over the past ~12-18+ months, we view OBDC as a best-in-class BDC that continues to deliver strong performance for all stakeholders in any/all operating environments (with a track record spanning nearly a decade now). However, the stock still trades at a notable discount to other high-quality, externally managed BDCs. With continued execution, which is our base case expectation, as well as moving further away from the OBDE merger that took place in January (i.e., less shareholder turnover, more liquidity, and an expanding shareholder base, etc.), we ultimately believe OBDC's valuation will close the gap with these peers. For some perspective, OBDC currently trades at just 0.95x current NAV (vs. 2025 consensus ROE expectations of 10.8%), while Ares Capital Corporation (ARCC, MO, $22 PT) and Blackstone Secured Lending Fund (BXSL, NC) trade at 1.11x and 1.16x current NAV, respectively, with 2025 consensus ROE expectations of 10.4% and 11.7%, respectively.”

For an analyst ratings summary and ratings history on Blue Owl Capital Corp. click here. For more ratings news on Blue Owl Capital Corp. click here.

Shares of Blue Owl Capital Corp. closed at $14.43 yesterday.

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