Analyst Ratings February 6, 2026

Goldman Sachs Lifts StepStone Group Price Target as Wealth Franchise Drives Outlook

Analyst boost reflects private wealth inflows, fundraising pipeline and revised EPS and fee growth forecasts

By Nina Shah STEP
Goldman Sachs Lifts StepStone Group Price Target as Wealth Franchise Drives Outlook
STEP

Goldman Sachs raised its price objective for StepStone Group (STEP) to $93.00 from $90.00 and left its Buy rating intact, citing growth in the firm’s Private Wealth business and an active fundraising pipeline. The new target implies roughly a 57% premium to StepStone’s most recent share price of $59.17. Goldman highlighted $16 billion in assets managed by the Private Wealth franchise and management’s expectation of more than $2 billion in quarterly subscriptions from that segment as key drivers. The bank also pointed to an upcoming flagship fundraising cycle across secondaries and co-investment strategies and $32 billion of available capital. Goldman increased its 2026 management fee growth assumption to 29% and lifted projected fee-related earnings growth to 23% for 2026, while nudging calendar-year EPS estimates higher for 2026 through 2028.

Key Points

  • Goldman Sachs raised its price target on StepStone to $93.00 from $90.00 and kept a Buy rating; the target implies about a 57% upside from the current $59.17 share price.
  • Private Wealth is a primary driver: the franchise manages $16 billion in assets and management expects more than $2 billion in quarterly subscriptions.
  • Goldman increased 2026 management fee growth projection to 29% and fee-related earnings growth to 23%, and modestly raised EPS estimates for 2026-2028.

Goldman Sachs has raised its price target for StepStone Group to $93.00 from $90.00 while maintaining a Buy recommendation on the stock. The revised target equates to an approximately 57% upside from StepStone’s latest share price of $59.17.

The bank pointed to strength in StepStone’s Private Wealth franchise as a principal justification for the change. That business line now oversees $16 billion in assets, and Goldman noted that StepStone’s management expects quarterly subscriptions from the segment to exceed $2 billion.

Goldman also cited the firm’s upcoming flagship fundraising cycle, which will focus on secondaries and co-investment strategies, together with the company’s reported $32 billion in available capital, as further contributors to a more positive outlook.

On key operating assumptions, Goldman Sachs raised its projection for management fee growth to 29% in 2026 and forecast fee-related earnings growth of 23% for the same year. The firm also adjusted its calendar-year earnings per share estimates modestly higher: to $2.49 for 2026 (from $2.48), $3.31 for 2027 (from $3.20), and $4.16 for 2028 (from $3.97).

Market valuation context in analyst coverage shows a range of price targets from $67 to $105, and a Fair Value assessment indicates StepStone may be trading below intrinsic value based on the available analyst inputs.

Recent company financials underscore why analysts are parsing both adjusted and GAAP measures. For the third quarter of fiscal 2026, StepStone reported adjusted net income of $80 million, or $0.65 per share, up from $53 million, or $0.44 per share, in the prior year period. At the same time, the company recorded a GAAP net loss of $123 million, or $1.55 per share. The contrast between adjusted profitability and the GAAP loss was highlighted in commentary accompanying the results.

These figures underpin a mixed picture: improved adjusted earnings and fee-related results, set against GAAP-level losses that may reflect items outside core fee generation. Investors and analysts will likely weigh subscription inflows, fundraises and available capital alongside the company’s accounting results as they assess StepStone’s financial trajectory.


Context and implications

  • Goldman’s target increase is driven by tangible growth in Private Wealth assets and expected subscription momentum.
  • Fundraising activity and the firm’s large pool of available capital are central to revenue and earnings upside assumptions.
  • Adjusted earnings improved year-over-year, while GAAP results showed a loss, creating areas of focus for stakeholders.

Overall, the analyst update reflects confidence in StepStone’s fee-generating prospects and fundraising bandwidth, while the GAAP-adjusted gap remains an uncertainty for some market participants.

Risks

  • GAAP profitability contrasts with adjusted earnings - StepStone reported a GAAP net loss of $123 million in Q3 FY2026 despite higher adjusted net income, which could temper investor confidence in reported earnings improvements - impacts financial sector and asset management stakeholders.
  • Execution risk around fundraising and subscription assumptions - the revised outlook depends on planned flagship fundraises across secondaries and co-investments and continued large subscription inflows, affecting private markets and wealth management segments.
  • Valuation dispersion among analysts - price targets range from $67 to $105 and a Fair Value assessment suggests potential undervaluation, creating uncertainty for market participants on appropriate valuation benchmarks - affects equity investors in the financials sector.

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