UPDATE: Goldman Sachs Starts Blue Owl Capital (OWL) at Buy

June 11, 2021 3:28 AM EDT
Get Alerts OWL Hot Sheet
Price: $13.92 +1.53%

Rating Summary:
    1 Buy, 0 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 18 | Down: 12 | New: 23
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(Updated - June 11, 2021 4:18 AM EDT)

Goldman Sachs analyst Alexander Blostein initiates coverage on Blue Owl Capital (NYSE: OWL) with a Buy rating and a price target of $18.50.

The analyst comments "We initiate coverage of Blue Owl (OWL) with a Buy rating and a $18.50 12-month price target -- implying a 16% upside. With $52bn in AUM, OWL recently went public via a combination of Owl Rock (one of the largest Direct Lending managers) and Dyal (a leader in the Alternative GP stakes space). We view OWL as a niche Alternative manager with outsized EPS growth prospects and attractive business attributes including (1) 100% of earnings from FRE, and (2) mostly a permanent capital AUM base creating significant model durability. We expect OWL's EPS to grow at a 40% CAGR through 2024, with ~30% revenue CAGR. Our 2021/22/23/24 DE/share estimates are $0.27/$0.43/$0.61/$0.74, and we are about 20% above management's forecasts for 2022E-24E. We see the firm delivering a more "steady-state" EPS growth of ~20% thereafter."

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 $16.25 yesterday.

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