UPDATE: Morgan Stanley Reiterates Overweight Rating, Raises PT on Oaktree Capital Group LLC on Stronger AuM Growth

In a report published Friday, Morgan Stanley analyst Matthew Kelley reiterated an Overweight rating on

, and raised the price target from $65.00 to $69.00. In the report, Morgan Stanley noted, “While many investors see OAK as a high-yielding stock with lower AuM growth prospects vs other, more pro-cyclical alternative asset managers at this point in the credit cycle, we expect 4Q13 results will begin to change that view. Not only did OAK raise over $10B of gross capital ($12.5B in ‘13) for the 7th straight year, but it is also reaching critical mass in several newer areas outside of its flagship distressed and control investing funds, leading to more diversified fundraising. Our forecast for 8% fee-paying AuM CAGR from 2013-17e is in the middle of our alternative asset manager coverage universe range, and we believe that investors will assign a higher multiple to OAK's earnings as more AuM shifts to its Open-End and Evergreen funds, given growth trajectories for strategies such as EM Equity and Strategic Credit.” Oaktree Capital Group LLC closed on Friday at $59.72.