Blue Owl Capital: Clear Street initiates coverage with a Buy rating and $15 PT.

Blue Owl Capital: Clear Street initiates coverage with a Buy rating and $15 PT.

Clear Street, a prominent investment research firm, has initiated coverage on Blue Owl Capital Inc. (NYSE: OWL) with a Buy rating and a price target of $15. This marks the first time Clear Street has issued a rating for Blue Owl Capital, signaling a positive outlook on the company's prospects.

Analyst's Opinion and Price Target
Clear Street's analyst has assigned a Buy rating to Blue Owl Capital, indicating a favorable view of the company's future performance. The price target of $15 suggests that the analyst believes the stock is undervalued and has significant upside potential. This rating comes amidst a broader market sentiment that has seen Blue Owl Capital's stock price fluctuate between $12.11 and $15.73 over the past year [2].

Company Overview
Blue Owl Capital operates as an asset manager in the United States, offering a wide range of capital solutions to middle market companies, large alternative asset managers, and corporate real estate owners and tenants. The company provides direct lending products, GP strategic capital products, and real estate products through permanent capital vehicles and long-dated private funds. Blue Owl Capital is headquartered in New York, New York [1].

Earnings and Valuation
Blue Owl Capital's earnings per share (EPS) are expected to grow by 22.83% in the coming year, from $0.92 to $1.13 per share. The company's price-to-earnings (P/E) ratio is 206.49, which is significantly higher than the market average of about 27.87. The PEG ratio of 1.25 suggests that the stock could be overvalued. However, the company's strong earnings growth and robust business model may justify its high valuation [1].

Dividend and Shareholder Interest
Blue Owl Capital is a leading dividend payer, with a dividend yield of 4.73%. The company has been increasing its dividend for the past four years but may face challenges in sustaining its current dividend payout ratio of 1,000.00% [1]. Despite the high short interest of 5.86%, which indicates bearish sentiment, the recent decrease in short interest by 0.74% suggests improving investor sentiment [1].

Recent News and Sentiment
Clear Street's rating comes amidst positive news sentiment for Blue Owl Capital. The company's news sentiment score of 1.32 over the last seven days is higher than the average news sentiment score of Finance companies, indicating a positive perception of the company in the market [1].

Conclusion
Clear Street's Buy rating and $15 price target for Blue Owl Capital Inc. reflect a positive outlook on the company's future prospects. The analyst's view is supported by Blue Owl Capital's strong earnings growth and robust business model. However, investors should be aware of the company's high valuation and potential challenges in sustaining its dividend payout ratio. As always, it is essential to conduct thorough research and consider individual risk tolerance before making investment decisions.

References:
[1] https://www.marketbeat.com/stocks/NYSE/OWL/
[2] https://www.marketbeat.com/instant-alerts/filing-ares-management-llc-has-3426-million-stock-position-in-blue-owl-capital-corporation-obdc-2025-09-02/