2024-02-19 09:46:22 ET
Summary
- Fed rate cuts may be delayed until June, impacting asset managers and their fee-based revenue.
- Blue Owl Capital is undervalued and a market leader in direct lending and capital solutions - EPS growth is seen north of 20% annually through 2026.
- Following a strong set of Q4 results, I see further fundamental upside.
- With the stock back near its 2021 highs, I point out key price levels to monitor on the chart.
Fed rate cuts are on the horizon, but the initial ease may not come as quickly as the consensus thought as recently as a few weeks ago. Following hot January inflation reads via last week’s CPI and PPI report, odds are that investors might have to wait until June before the FOMC slashes its policy rate. Moreover, just 90 basis points of cuts are now priced into 2024 – that is down from upwards of 140 basis points from earlier in the year. This macro trend is key for asset managers as lower yields could result in softer capital markets and fee-based revenue. ...
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Blue Owl Capital: $1 Per Share Dividend Target Doable