Blue Owl Capital stock rating maintained at Equal Weight by Wells Fargo

Published 08/08/2025, 12:16
Blue Owl Capital stock rating maintained at Equal Weight by Wells Fargo

Investing.com - Wells Fargo (NYSE:WFC) has reiterated its Equal Weight rating on Blue Owl Capital (NYSE:OWL) with a price target of $13.00. Currently trading at $18.94, the stock has analyst targets ranging from $16.50 to $29.00, with InvestingPro analysis suggesting the stock is undervalued at current levels.

The firm noted that Ideal Image was added to non-accrual status during the quarter, representing a relatively small $13.4 million position. Several portfolio companies experienced notable unrealized marks, including National Dentex, which declined from 77 to 51 while maintaining its $78 million fair value.

Other significant portfolio movements included Conair Holdings, which was downgraded by both Moody’s and S&P during the quarter, causing its valuation to fall from 90 to 77. Notorious Topco decreased from 86 to 74, while Cornerstone 2L improved from 88 to 96 and Premier Imaging climbed from 92 to 95.

Wells Fargo adjusted its earnings estimates for Blue Owl Capital to $1.58, $1.38, and $1.22 (Adjusted NOI for purchase accounting) for 2025 through 2027, compared to previous estimates of $1.56, $1.35, and $1.24.

The firm’s $13 price target continues to reflect an 11% yield on forward NOI, with analysts incorporating more weight from specialty finance strategies that offset market spread compression, while near-term estimates benefited from recent movements in the SOFR curve.

In other recent news, Blue Owl Capital Inc. reported its second-quarter 2025 earnings, showcasing a notable revenue performance that exceeded expectations. The company achieved a revenue of $703.11 million, surpassing the anticipated $591.51 million, resulting in an 18.87% surprise. Earnings per share (EPS) were in line with forecasts, standing at $0.21. These developments highlight Blue Owl Capital’s strong financial performance during the quarter. Additionally, the earnings announcement positively influenced investor sentiment. The revenue figures and earnings per share results are crucial indicators for investors assessing the company’s financial health. Blue Owl Capital’s ability to exceed revenue expectations is a significant highlight for stakeholders. These recent developments reflect the company’s current financial standing and market perception.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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