Buy Rating Affirmed for Blue Owl Capital Amid Strong Fundraising and Growth Prospects

Christopher Allen, an analyst from Citi, has initiated a new Buy rating on Blue Owl Capital (OWL).

Christopher Allen has given his Buy rating due to a combination of factors concerning Blue Owl Capital’s promising outlook and solid fundamentals. Allen highlights the company’s robust fundraising dynamics, especially within the Private Wealth Channel (PWC), as a key driver for future growth. The firm’s earnings potential is underscored by a diverse business mix and a permanent capital model, which together provide a stable foundation for revenue. Furthermore, Allen points to the momentum in the wealth channel and the expansion opportunities in the insurance sector following recent acquisitions as additional reasons for his positive stance on OWL’s stock.

Additionally, Allen’s confidence in Blue Owl Capital is bolstered by the company’s ability to potentially generate over 20% growth in both top and bottom lines in the coming years. His earnings estimates for 2024 and 2025 remain largely unchanged, reflecting a constructive view on the company’s capacity to sustain fundraising across its platform while maintaining stable expense and margin trends. The target price of $21 set by Allen implies a belief in the company’s value and anticipated share price return, further justifying the Buy rating for Blue Owl Capital’s stock.

In another report released on May 6, Piper Sandler also reiterated a Buy rating on the stock with a $23.00 price target.

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Blue Owl Capital (OWL) Company Description:

Altimar Acquisition Corp is a blank check company.