StepStone Seen Delivering Around 25% Annual Earnings Growth, RBC Says

11:44 AM EDT, 09/10/2026 (MT Newswires) -- StepStone (STEP) is poised for a significant increase in earnings power, with adjusted EPS expected to grow about 25% annually, driven by accretive buy-ins, fundraising and fee-related earnings margin expansion, RBC said in a note Wednesday. According to the note, StepStone's private wealth platform has grown net asset value about five-fold to more than $20 billion in two years, with quarterly flows above $2 billion, while strong platform performance and new distribution initiatives support further growth. RBC expects a commingled-fund fundraising cycle to drive a favorable mix shift, with fee-related earnings revenue forecast to grow 24% annually over two years and the FRE margin reaching 40% by fiscal 2028. The analysts identified StepStone's planned private wealth buy-in as a key earnings catalyst, estimating it could lift ANI per share by about 15% and materially reduce noncontrolling interests, supporting 2028 earnings growth, the note said. RBC initiated coverage with an outperform rating on the stock and a price target of $65. Price: 49.90, Change: -0.04, Percent Change: -0.08