Piper Sandler Reaffirms Overweight Rating for Blue Owl Capital (OWL)

Blue Owl Capital Inc. (NYSE:OWL) is one of the 7 oversold stocks to buy with double-digit ROE growth.

On April 7, Piper Sandler reduced the price target on Blue Owl Capital Inc. (NYSE:OWL) from $15 to $12.50 while maintaining an Overweight rating on the stock. The firm pointed out that the asset management segment experienced a tough beginning in 2026 compared to both the market and the finance industry.

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This stems from increased pressure on private credit, redemption from direct lending wealth products, weak equities, and poor capital market visibility due to uncertainty and the Iran situation. While these macroeconomic factors will not vanish immediately, Piper thinks that catastrophic downsides are fully priced in much of its coverage universe.

On April 2, Blue Owl Capital Inc. (NYSE:OWL) announced increased requests for shareholder redemptions in two private credit portfolios in the first quarter. Withdrawal queries totaling 21.9% of outstanding shares were received by the firm’s flagship OCIC fund, which manages about $36 billion.

Concurrently, demand for withdrawals from the smaller technology-focused portfolio has risen to 40.7%. According to Jefferies, software enterprises account for approximately 20% of the overall portfolio of business development companies. What’s causing this withdrawal activity is the market’s increased anxiety over AI’s ability to upend the software sector. Due to the mandated 5% withdrawal limitations and robust gross inflows, there were relatively minor net outflows at the current level.

Blue Owl Capital Inc. (NYSE:OWL) is an alternative asset manager that offers capital solutions to mid-market companies. With an emphasis on credit, real assets, and GP strategic capital, it provides private financing, direct lending, opportunistic lending, equity financing, and leasing solutions. It is well-reputed for delivering a differentiated route to private markets and secular growth trends.

While we acknowledge the risk and potential of OWL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than OWL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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