JPMorgan Reduces PT on Blue Owl Capital (OWL) Stock

Blue Owl Capital Inc. (NYSE:OWL) is one of the Worst Performing Stocks to Invest in on the Dip. On November 3, JPMorgan reduced the price target on the company’s stock to $20 from $22, while keeping a “Neutral” rating on the company’s stock. The firm updated its model after the company’s Q3 2025 report. In Q3 2025, Blue Owl Capital Inc. (NYSE:OWL)’s total revenues (net) came in at $727.9 million compared to $600.8 million in Q3 2024, with management fees (net) rising from $523.3 million to $645.6 million.

The management fees from Credit rose $76.4 million, which included a rise in Part I Fees of $10.9 million, primarily because of continued fundraising and deployment of capital in new and existing direct lending products. Blue Owl Capital Inc. (NYSE:OWL)’s GAAP net income witnessed a decline of 79% YoY in Q3 2025 to $6.3 million amidst a rise in expenses of 33% to $615.3 million.

Overall, Blue Owl Capital Inc. (NYSE:OWL)’s results were characterized by the strength of its business momentum, thanks to another record for fundraising and financial results on a twelve-month basis. New capital commitments touched $14 billion in Q3 2025 and $57 billion over the last twelve months, demonstrating robust interest in its strategies throughout institutional, private wealth, and insurance clients.

While we acknowledge the potential of OWL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 13 Cheap AI Stocks to Buy According to Analysts and 11 Unstoppable Growth Stocks to Invest in Now

Disclosure: None. This article is originally published at Insider Monkey.