Blue Owl (OWL) Stock: Is Barclays Right About 21% Upside?

Analysts at Barclays recently updated their price target for Blue Owl Capital (NYSE:OWL), projecting a significant upside. But what's driving this optimism? Let's delve into the factors influencing Blue Owl's potential growth.

Barclays Boosts Blue Owl's Price Target

Barclays increased its price objective for Blue Owl from $21.00 to $23.00, suggesting a potential 21.44% increase from the current price. They maintain an "overweight" rating on the stock, indicating a positive outlook.

Other Analysts Weigh In

Barclays isn't alone in its positive assessment. Other firms have also issued reports on OWL:

• Cfra Research upgraded Blue Owl to a "moderate buy".
• Wells Fargo & Company raised their price objective to $21.00, giving an "equal weight" rating.
• Evercore ISI also lifted their price objective to $21.00, with an "outperform" rating.
• Keefe, Bruyette & Woods upgraded the stock to "outperform" and set a price objective of $23.00.
• Citigroup lowered their price objective to $23.00 but maintained a "buy" rating.

Overall, the consensus rating for Blue Owl is "Moderate Buy," with an average target price of $23.85.

Blue Owl's Role in the AI Infrastructure Boom

Blue Owl's strategic focus on digital infrastructure, particularly data centers, is a key factor driving its growth potential. The company's $7 billion Digital Infrastructure Fund III is capitalizing on the increasing demand for high-powered data centers driven by AI applications. This fund is involved in major projects, including a $15 billion collaboration with Oracle for a U.S. government data center. This positions Blue Owl as a critical infrastructure provider in the AI revolution, securing long-term contracts and steady demand. Moreover, Blue Owl delivered 25% dividend growth in 2025, exceeding its stated targets.

Stock Performance

Blue Owl Capital (NYSE:OWL) traded down $0.66 during mid-day trading on Thursday, reaching $18.94. The trading volume was 6,196,861 shares, compared to its average of 6,926,935. The stock has a 12-month low of $14.55 and a 12-month high of $26.73.

Conclusion

Blue Owl Capital's focus on digital infrastructure, particularly its involvement in the AI-driven data center boom, combined with positive analyst ratings and a strong dividend growth, suggests a promising outlook for the company. Whether Barclays' 21% upside projection materializes remains to be seen, but the underlying factors supporting Blue Owl's growth are certainly compelling.