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Investing.com - Citizens has reiterated its Market Outperform rating on Blue Owl Capital (NYSE:OWL) with a $28.00 price target, citing early signs of accelerating business trends. The target represents a significant upside from the current price of $16.51, with InvestingPro data showing the company’s market capitalization stands at $25.58 billion.
The firm highlighted that the second quarter of 2025 was a record fundraising period for Blue Owl, and while the third quarter may not break records, fundraising trends are expected to remain strong and above quarterly averages compared to recent years. This momentum is reflected in the company’s impressive 31.81% revenue growth over the last twelve months.
Citizens noted that accelerated fundraising typically precedes strong deployment activity, which should lead to noticeable fee growth in coming quarters as most assets under management begin earning fees once deployed, particularly as the deployment environment improves.
The firm also emphasized that Blue Owl’s fee-related earnings margin remains a key focus, suggesting that an inflection point where margins begin increasing again would send a positive signal to the market, with progress expected into year-end and 2026.
At 16 times Citizens’ 2026 estimated earnings per share, the firm believes Blue Owl represents significant value despite market concerns around private credit and the fundamentals of recent acquisitions in alternative credit and digital infrastructure. InvestingPro analysis suggests the stock is currently slightly undervalued, with additional insights available in the comprehensive Pro Research Report covering this and 1,400+ other top US stocks.
In other recent news, Blue Owl Capital reported several significant developments. The company has entered into a strategic partnership with Qatar Investment Authority to launch a digital infrastructure platform focused on data centers, starting with over $3 billion in assets. This initiative aims to meet the growing demand for cloud and AI transformation. Additionally, Blue Owl has signed a two-year agreement with PayPal to acquire approximately $7 billion in buy now, pay later receivables, while PayPal will continue managing customer-facing activities.
Blue Owl also launched its first interval fund with $850 million in capital, targeting the asset-based finance market. In another development, BMO Capital initiated coverage on Blue Owl Capital with an Outperform rating, citing the company’s strong combination of perpetual assets under management and robust wealth management distribution. These recent developments highlight Blue Owl’s strategic moves in expanding its financial and digital infrastructure footprint.
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