Raymond James Upgrades Blue Owl Capital (OWL) to Strong Buy

Raymond James analyst Wilma Burdis upgraded Blue Owl Capital (NYSE: OWL) from Market Perform to Strong Buy with a price target of $20.00.

The analyst comments: "OWL trades at a forward P/E multiple of ~17x versus its 3-year average of ~19x and 20-30x for peers with fee-related earnings (FRE) business models. We think its valuation reflects the elevated risk of one or more of its non- traded business development companies (BDCs) hitting 5% redemption caps in 4Q25. OWL has an industry-leading fee rate and high margin of 57-58%, and its guided FRE CAGR of ~20%+ appears compelling.

We think redemption risk is manageable as OWL appears likely to honor all requests, which would remove an overhang on the stock. OWL’s funds maintain plenty of liquidity to meet multiple quarters of redemption requests. And, we do not expect that elevated redemptions would have a material impact on AUM or management fees. From October 1 through December 1, OWL closed an estimated ~$4.3 billion of aggregate capital across its evergreen non-traded products, up from $3.4 billion in the prior quarter."

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

Shares of Blue Owl Capital closed at $16.67 yesterday.

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