Blue Owl Capital upgraded to strong buy on strong fundraising and Q1 earnings

Blue Owl Capital has been upgraded to a strong buy due to its resilient fundraising, having raised over $44 billion in the past year and maintaining $30 billion in dry powder. The company reported robust Q1 earnings with fee-related earnings of $0.25 per share and a 15% year-over-year growth in assets under management. Its forward dividend yield is attractive at 9.3%, supported by a $0.92 per share payout commitment. Valuation is compelling at 11 times forward P/E compared to the industry average of 19.5 times, with future growth expected from AI infrastructure and real assets fundraising.