Morgan Stanley Sees 6-7% Yield on Rising Distributions for Oaktree Capital Group LLC

In a report published Tuesday, Morgan Stanley analyst Michael J. Cyprys reiterated an Overweight rating and $65.00 price target on

. In the report, Morgan Stanley noted, "While many investors see OAK as a distressed credit cycle stock, we expect 2014 results will begin to change that view. OAK raised a record $14.7b of gross capital without a distressed debt fund (up from $12.5b raised in 2013 which was also a record without a distressed fund). Over 50% or $8b of the capital raised in 2014 is from recently launched products, including senior loans, strategic credit,EM debt/equity and real estate.These new strategies have reached critical mass and we think OAK is about to scale the business under a new CEO to increase distribution of more traditional asset mgmt products." Oaktree Capital Group LLC closed on Monday at $54.13.