Raymond James Reiterates Strong Buy on Blue Owl as Redemption Fears Ease

Core Viewpoint - Raymond James maintains a Strong Buy rating and a price target of $20.00 for Blue Owl Capital (NYSE: OWL) [1] Group 1: Redemption Requests and Valuation - Recent data indicates that fourth-quarter 2025 redemption requests for OCIC are expected to be below 7%, alleviating concerns regarding redemptions in non-traded BDC products [2] - Blue Owl's valuation stands at approximately 16 times earnings, significantly lower than the 20 to 30 times earnings of its peers, with operating margins in the range of 57% to 58% [2] - The company is projected to achieve a compound annual growth rate (CAGR) of over 20% in fee-related earnings [2] Group 2: Confidence in Redemption Levels - Confidence in the redemption outlook is bolstered by Blue Owl's decision not to amend its fourth-quarter tender offer for OCIC, which would have been necessary if redemptions exceeded the 7% threshold [3] - The redemption window for OCIC closed on December 31, and it is believed that Blue Owl already has a clear understanding of redemption levels [3] - Historically, OCIC redemption data is released in the third week of January unless management opts for an earlier disclosure [3]