Jefferies has commenced coverage of Blue Owl Capital (OBDC, Financial), assigning a Buy rating and setting a price target of $16. The firm highlights Blue Owl Capital's strategic portfolio construction aimed at resilience during market volatility as a significant factor in its potential to outperform. Despite the current market's widespread credit spreads and cautious investor sentiment, Blue Owl's emphasis on upper-middle-market borrowers and sponsor-backed deals makes it robust.
The stock is presently trading at a 15% discount to its net asset value, and a 12% discount compared to its peers, a situation Jefferies deems unjustified given the portfolio's non-cyclical characteristics. The company's minimal exposure to potential risks such as tariffs, the Chinese market, and the automotive industry further bolsters its defensive positioning. Jefferies anticipates that as the market becomes more aware of these strengths, OBDC stock valuations may recover, reflecting its true value.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 10 analysts, the average target price for Blue Owl Capital Corp (OBDC, Financial) is $16.08 with a high estimate of $17.00 and a low estimate of $14.50. The average target implies an upside of 22.80% from the current price of $13.09. More detailed estimate data can be found on the Blue Owl Capital Corp (OBDC) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Blue Owl Capital Corp's (OBDC, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Blue Owl Capital Corp (OBDC, Financial) in one year is $39.51, suggesting a upside of 201.83% from the current price of $13.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Blue Owl Capital Corp (OBDC) Summary page.
