Blue Owl Capital Q4 Record Earnings, Piper Sandler Cuts Target to $15
On February 6, Piper Sandler cut Blue Owl Capital’s price target to $15 from $21 despite record Q4 earnings and $307.4 billion in assets under management, citing lower revenue forecasts but improved margins. Moody’s upgraded its rating to Baa2, noting gross debt-to-equity fell from 1.27x, asset coverage rising to 20%.
1. Price Target Revision
On February 6, Piper Sandler reduced its price target on Blue Owl Capital to $15 from $21 while reiterating an Outperform rating. The analyst noted that revenue growth estimates would fall below investor day targets but expected margin expansion driven by tighter cost management.
2. Q4 Earnings and AUM
Blue Owl reported record fourth-quarter results, benefiting from strong private credit fundraising and strategic capital investments. The firm ended the period with $307.4 billion in assets under management and noted year-over-year margin improvement.
3. Credit Rating Upgrade
Moody’s raised Blue Owl’s long-term issuer rating from Baa3 to Baa2, citing anticipated reductions in gross debt-to-equity from 1.27x as of September 30, 2025. The upgrade reflects expected asset coverage growth from 19% to 20%, enhancing the firm’s financial flexibility.