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Home/News Feed/Blue Owl Capital rated Buy on discount to NAV; Ares Capital downgraded to Hold despite similar credit risk
ARCC
$18.99
+$0.07 +0.37%

Blue Owl Capital rated Buy on discount to NAV; Ares Capital downgraded to Hold despite similar credit risk

Analyst Insights
14 Apr 2026
Seeking Alpha
View Source
Neutral
pluang ai news

Blue Owl Capital (OBDC) is rated Buy due to its attractive valuation, trading at about a 27% discount to net asset value (NAV), compared to Ares Capital (ARCC) which trades at a 9% discount and is downgraded to Hold. Both companies have similar credit quality and non-accrual rates, with OBDC's Q4 non-accruals slightly lower at 1.1% versus ARCC's 1.2%. The analyst recommends gradually accumulating OBDC shares as its discount widens, while maintaining current ARCC holdings without adding new capital. This reflects a valuation gap despite comparable underlying credit risk and asset quality.

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