Friday - Wolfe Research has raised the price target on Blue Owl Capital (NYSE:OWL) to $22 from $20, while reiterating an Outperform rating on the stock. The adjustment follows recent investor meetings with the company's CFO, Alan Kirshenbaum, and Head of IR, Ann Dai, which centered on the firm's strategy to reach a $1 dividend per share by 2025.
The research firm expressed increased confidence in Blue Owl's potential to achieve or come close to this dividend target. The meetings highlighted the company's commitment to scaling new growth initiatives, which could drive management fee growth well beyond 2025. Wolfe Research's estimates suggest a compound annual growth rate (CAGR) of over 25% for fee-related earnings (FRE) through 2025.
According to Wolfe Research, the current share price of Blue Owl Capital does not fully reflect the company's growth prospects when compared to its peers. The firm's analysis indicates that there is an approximate 18% upside to the newly set $22 price target.
The updated outlook for Blue Owl Capital is based on the company's strategic efforts to expand and the anticipated impact on its financial performance. The focus on newer growth initiatives is expected to underpin a robust management fee growth trajectory, supporting the company's ambitious dividend target for 2025.
Wolfe Research's outlook for Blue Owl Capital underscores a positive view of the company's financial strategies and growth potential, suggesting that the stock may offer value to investors at its current price level relative to the industry.
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