Blue Owl Capital price target raised to $27 from $25 at JMP Securities

JMP Securities raised the firm’s price target on Blue Owl Capital (OWL) to $27 from $25 and keeps an Outperform rating on the shares. Two of Blue Owl’s business development companies announced that they are merging to form one tech-focused BDC, and JMP is “pleased” to see the formal development, as operating one BDC has several benefits, which should be accretive to returns over time, the analyst tells investors in a research note. JMP believes that the path to a public listing for OTF/OTF II is clearer, and once the vehicle uplists, management fees and part 1 fees paid to Blue Owl will step up to 1.5% on gross assets and 17.5% of NII, translating to a $135M increase in management/part 1 fees for Blue Owl.