Gold bars to be exempt from tariffs, White House clarifies
Investing.com - Evercore ISI has raised its price target on StepStone Group (NASDAQ:STEP) to $62.00 from $61.00 while maintaining an Outperform rating, citing the company’s 45% year-over-year growth in core fee-related earnings (FRE). The company, currently valued at $6.84 billion, has demonstrated impressive revenue growth of 65% over the last twelve months. According to InvestingPro data, StepStone’s stock price currently stands at $57.45, with analysts maintaining a positive outlook.
StepStone reported adjusted ANI of $0.40, missing analyst estimates of $0.42-$0.43 due to timing-related performance fees, but showed core margin expansion to 37%, representing a 300 basis point improvement year-over-year. The company maintained $5 billion in FEAUM (fee-earning assets under management) subscriptions, in line with expectations. With a beta of 1.36 and a current dividend yield of 2.79%, StepStone offers investors both growth potential and income opportunities.
The asset manager has already recorded $35 million in performance fees in July and its four evergreen funds attracted $1.5 billion in subscriptions, bringing that platform to $10 billion in AUM, or 8% of FEAUM. Management expressed optimism about the separately managed account pipeline, noting continued 90%+ re-up rates for SMA clients with an average 30% increase. InvestingPro analysis reveals several additional insights about StepStone’s performance and potential. Subscribers can access the comprehensive Pro Research Report, which provides detailed analysis of the company’s financials and growth prospects.
StepStone reported $29 billion in undeployed fee-earning capital, up 17% quarter-over-quarter, with an approximately three-year deployment period. The company has five commingled funds currently in market, with its commingled PE co-invest fund slated for a first close in fiscal Q2.
Evercore ISI adjusted its fiscal 2026 and 2027 EPS estimates to $1.81 and $2.44, respectively, and continues to support management’s target of at least doubling FRE over the next five years, noting that StepStone is currently ahead of pace to achieve this goal.
In other recent news, StepStone Group has reported significant financial developments, with a notable rise in earnings per share (EPS) for the fourth fiscal quarter of 2025. The company achieved an EPS of $0.68, surpassing both Goldman Sachs’ estimate of $0.40 and the consensus estimate of $0.44. This strong performance was driven by record fee-related earnings of $94 million and a substantial net performance fee contribution of $42 million. Additionally, StepStone completed a major transaction to expand its ownership stakes in three asset class entities, increasing its ownership to approximately 60% in real estate and real assets, and 61% in private debt. The transaction involved about $11 million in cash and the issuance of shares and units.
Analysts have responded to these developments with adjustments to StepStone’s stock price targets. Goldman Sachs raised its price target to $63 while maintaining a neutral rating, and JPMorgan increased its target to $68 with an overweight rating. StepStone’s management fees from commingled funds reached $125 million, exceeding JPMorgan’s expectations. The company also reported catch-up fees of $15.7 million, bolstered by significant fund closings. These recent developments highlight StepStone’s strong financial performance and strategic growth initiatives.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.