Blue Owl Capital: A Compelling Buy with Strong Growth Potential and Defensive Characteristics

Bank of America Securities analyst Craig Siegenthaler has maintained their bullish stance on OWL stock, giving a Buy rating on June 4.

Craig Siegenthaler has given his Buy rating due to a combination of factors including Blue Owl Capital’s strong earnings growth potential and its defensive earnings characteristics, such as locked-up assets under management and fee-related earnings. The stock is perceived as under-owned and undervalued compared to its peers, which presents a compelling investment opportunity.
Furthermore, Blue Owl Capital’s private credit portfolio is well-positioned to withstand economic slowdowns, with a focus on larger borrowers and low loan-to-value ratios. The company’s global retail distribution efforts are expanding, particularly in Asia, which could enhance its market position. Although there is potential for increased competition from bank deregulation, Blue Owl Capital’s strategic positioning in the private credit market remains robust.

In another report released on June 4, KBW also maintained a Buy rating on the stock with a $23.00 price target.