Keefe, Bruyette & Woods (KBW) has shifted Blue Owl Capital’s rating from ‘Market Perform’ to ‘Outperform’, citing a favorable change in macroeconomic conditions and renewed clarity in its growth trajectory. With the financial landscape stabilizing, KBW sees a clearer earnings runway for Blue Owl extending into late 2025 and early 2026. This upgrade also reflects the stock’s relative valuation, which now appears more attractive in light of its consistent earnings power and scale in the alternative asset space.
💼 Blue Owl has been strategically positioning itself as a leading provider of permanent capital solutions. Its focus on lending to private equity-backed companies continues to deliver dependable fee-related earnings. The stock’s technicals have also shown momentum recently, helping to support the bullish outlook from analysts. With shares trading at a discount relative to peers on a fee-based earnings multiple, the upgraded price target of \$23 signals potential upside from current levels.
💸 On the dividend front, Blue Owl Capital continues to impress. The company recently declared a quarterly dividend of \$0.224 per share, translating to a forward yield of around 3.69%. This marks the fourth consecutive year of dividend growth since its public debut in 2021. The dividend is well-supported by fee-based revenues, a business model that tends to hold up even when capital markets tighten.
📈 Investors looking for a blend of yield, growth, and exposure to private credit markets may find Blue Owl Capital well-positioned for the current environment.