TD Cowen reaffirmed a Buy rating on Blue Owl Capital (NYSE:OWL), maintaining a $30 price target, citing long-term confidence despite the stock’s recent underperformance. Shares have fallen roughly 30% year-to-date, mirroring sector peers, but the firm sees the decline as disconnected from the company’s strong fundamentals.
According to TD Cowen, Blue Owl still boasts one of the most durable and diversified business models in the alternative asset management space, anchored by permanent capital and high free-related earnings (FRE) conversion to distributable earnings (DE).
At approximately 14.5x 2026 earnings estimates and offering a forward dividend yield around 5.5%, the firm views OWL as undervalued. While macroeconomic uncertainty has triggered a cautious stance among investors, TD Cowen remains optimistic about OWL’s compounding growth profile and expanding platform, seeing current levels as an attractive entry point.