BofA lowered the firm’s price target on Blue Owl Capital (OBDC) to $13.50 from $15.50 and keeps a Buy rating on the shares following the termination of its proposed merger with an affiliated fund due to current market conditions. BofA views the announcement favorably since the potential near-term accretion of the transaction was minimal, according to the firm. BofA added that the timing of the proposed merger was not ideal as investor concerns about lower rates and private credit have caused business development companies to underperform, the firm told investors in a research note.
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