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Goldman Sachs upgrades Stepstone Group to Buy amid robust private wealth growth

Goldman Sachs analyst Alexander Blostein upgraded Stepstone Group (STEP) to Buy from Neutral with a price target of $83, up from $64. The firm expects the company to grow management fees at an 25% CAGR from 2024-28, underscored by robust growth in the Private Wealth business, an upcoming flagship fundraising cycle, and record levels of shadow AUM benefiting SMA growth, the analyst tells investors in a research note. The firm alsos see a meaningfully accretive call option in Q3 on the NCI portion of Stepstone’s Private Wealth business driving normalized fee-related earnings, Goldman added.

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