Michael Brown, an analyst from UBS, has initiated a new Buy rating on StepStone Group (STEP).
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Michael Brown has given his Buy rating due to a combination of factors that highlight StepStone’s attractive growth and earnings profile. He views the company as a structurally advantaged alternatives manager whose strong proprietary data and diversified wealth platform support faster fee-related earnings growth than peers, with his forecasts implying a sustained edge in both fee expansion and earnings power.
Brown also emphasizes a clear catalyst path, particularly the expected buy-in of the wealth business stake around 2027, which he estimates will meaningfully lift margins and drive double‑digit EPS accretion by 2028. In his view, the current valuation fails to reflect this growth and the step‑change in profitability, leaving the shares trading below historical multiples and creating a compelling entry point relative to the firm’s long‑term prospects and earnings trajectory.
In another report released on March 24, BMO Capital also maintained a Buy rating on the stock with a $58.00 price target.