Citi cuts Blue Owl target, opens ‘downside’ short-term view

Citi lowered the firm’s price target on Blue Owl Capital (OWL) to $23 from $30 and keeps a Buy rating on the shares. The firm also added a “downside 90-day short-term view” on the shares. Citi sees near-term pressure on the stock, saying the current economic headwinds are dampening merger activity, which could negatively impact credit deployment, pressuring Blue Owl’s earnings and creating downside risk to its 2025 guidance Also, any increase in credit concerns could create headline risk for the stock and potentially impact the outlook for fundraising, the analyst tells investors in a research note. This report clarifies Citi’s short-term view on Blue Owl to “downside” from a “negative catalyst watch.”