Key insights
- Goldman Sachs reiterates a Neutral rating on Blue Owl Capital (OWL), citing growth in Real Assets but cautioning about revenue growth in the Credit business. They project modest revenue and distributable EPS growth in the near term. InvestingPro data shows downward earnings revisions by analysts. The stock offers a substantial dividend yield but faces headwinds in its BDC complex, potentially impacting revenue growth. Overall, the report suggests mild bearish pressure on OWL.
Investing.com - Goldman Sachs reiterated a Neutral rating on Blue Owl Capital (NYSE:OWL) stock and maintained its $9.50 price target. The stock currently trades at $9.75, down 36% over the past six months.
The firm noted growth in Blue Owl’s Real Assets strategies, including Real Estate and Digital Infrastructure, along with durable fundraising in the institutional channel. Of the $9 billion in equity raised in the first quarter of 2026, $6 billion came from the institutional channel.
Goldman Sachs expressed caution on the outlook for revenue growth in Blue Owl’s Credit business, which accounts for 57% of revenues. The firm expects flat to low-single digit growth through 2027 in this segment. This aligns with broader analyst sentiment, as InvestingPro data shows 8 analysts have recently revised their earnings estimates downward.
The firm’s BDC complex, both public and private, accounts for more than 80% of Credit revenues. Goldman Sachs expects publicly traded BDCs to see limited revenue growth in 2026 and anticipates net outflows in NT BDCs through early 2027.
Goldman Sachs projects less than 10% revenue and distributable earnings per share growth in 2026 and 2027 on average, before recovering to approximately 11% to 13% in 2028. The firm’s updated distributable earnings estimates are $0.87, $0.97, and $1.10 for 2026, 2027, and 2028 respectively. Despite near-term headwinds, the stock appears undervalued according to InvestingPro’s Fair Value analysis, while offering investors a substantial 9.2% dividend yield.
In other recent news, Blue Owl Capital Inc. reported impressive financial results for the first quarter of 2026. The company exceeded analysts’ expectations, achieving an earnings per share (EPS) of $0.19, compared to the anticipated $0.18, representing a 5.56% surprise. Additionally, Blue Owl Capital outperformed revenue forecasts by posting $753.81 million, surpassing the expected $689.69 million, which marks a 9.3% surprise. These developments underscore the company’s robust performance in the recent period.
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