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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAmid a sell-off pressuring large asset managers in June, a Seeking Alpha analyst argues Blue Owl Capital (OWL) is pricing in an earnings collapse that fundamentals don't justify. According to the analysis, the stock trades at just 9.6x forward P/E with an 11% forward dividend yield, levels inconsistent with the resilience of its institutional investor base, which dampened the June selling frenzy.
OWL closed at $8.57 on June 26, within a daily range of $8.40-$8.71, per market data. The June sell-off hit the asset management sector, but the analyst notes Blue Owl's institutional base remains sticky, limiting downside. Additionally, growth in real estate and data infrastructure AUM—driven by AI demand—provides substantial upside optionality, the report says.
Technically, the stock hovers around $8.57, with resistance at $8.71 (the day's high) and support at $8.40. Investors now look to Q2 earnings reports and the contribution of AI investments to AUM growth as key catalysts. The elevated dividend yield may also attract income-seeking investors in the current rate environment.