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Investing.com - Clear Street initiated coverage on Blue Owl Capital Corp. (NYSE:OBDC) with a Buy rating and a $15.00 price target on Thursday. Currently trading at $14.36, OBDC offers an attractive dividend yield of 11.32% and trades at a P/E ratio of 9.54x. According to InvestingPro, the stock has raised its dividend for 3 consecutive years.
The research firm highlighted OBDC’s position as a large, sponsor-focused Business Development Company (BDC) that offers exposure to upper middle market credit with strong diversification and scale advantages.
Clear Street noted that OBDC’s $17 billion portfolio spans 233 companies, with emphasis on defensive sectors like software and healthcare, and features average borrower revenue of almost $1 billion.
The firm pointed to OBDC’s 2025 merger with OBDE as a factor that expanded the company’s balance sheet, with expected Return on Equity uplift from synergies, while also citing benefits from robust liquidity, modest leverage, and diversified funding.
Clear Street’s analysis indicated that OBDC’s disciplined underwriting and sponsor alignment support credit quality, while management anticipates rising deal activity and strategic initiatives to diversify income, supporting stable returns.
In other recent news, Blue Owl Capital announced an amendment to its existing secured credit facility through its subsidiary, ORCC III Financing LLC. The amendment, known as Amendment No. 8 to the Loan and Servicing Agreement, involves multiple parties, including Blue Owl Credit Advisors LLC, Societe Generale, and State Street Bank and Trust Company. This development is part of Blue Owl Capital’s efforts to update its credit facility diligence procedures. Additionally, JMP Securities reiterated its Market Outperform rating for Blue Owl Capital with a price target of $17.00. The firm maintains a positive outlook on the company, noting that it continues to trade at a discount to its net asset value despite strong fundamentals. These recent developments highlight Blue Owl Capital’s ongoing strategic financial maneuvers and the confidence expressed by analysts.
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