Blue Owl Capital initiated with a Buy at Jefferies

Jefferies initiated coverage of Blue Owl Capital (OBDC) with a Buy rating and $16 price target The firm says that with market credit spreads wide and investor sentiment cautious, Blue Owl Capital’s “defensive” portfolio construction, focus on upper-middle-market borrowers, and sponsor-backed deals position it to outperform. The stock’s current 15% discount to net asset value and 12% discount relevant peers is unwarranted considering the non-cyclical focus of the portfolio, the analyst tells investors in a research note. Jefferies believes Blue Owl Capital’s portfolio has minimal exposure to tariffs, China, or the auto industry, and that the stock’s valuation should rebound as the market “takes note.”