Blue Owl Capital (OWL) PT Lowered to $17 at Citizens as Sell-Side More Constructive

Citizens analyst Devin Ryan lowered the price target on Blue Owl Capital (NYSE: OWL) to $17.00 (from $21.00) while maintaining a Market Outperform rating.

The analyst commented, "We believe Alts can work even if the group only reaches Street estimates, because the sell-side is already more constructive than investors, and that gap should close in the stocks. Our numbers sit largely in line with consensus across ARES (MO, $160 PT), BX (MO, $165 PT), OWL (MO, $17 PT), CG (MO, $70 PT), and TPG (MO, $68 PT), so the call does not depend on out-estimating the Street. The group is down roughly 29% YTD and trades at just ~12x NTM P/E vs. an ~20x average over the past five years, even as institutional flows, deployment, and FRE margins have held up. We think the group outperforms as investors grow more comfortable that the headlines are slowing and performance is delivering as current Street estimates imply, and we expect a rotation from other areas of large-cap financials that are over-owned and trading well above historical levels."

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