Stepstone Group initiated with an Outperform at Oppenheimer

Oppenheimer analyst Chris Kotowski initiated coverage of Stepstone Group (STEP) with an Outperform rating and $48 price target. 2023 was a strong year for the performance of “Alt” managers, notes the firm, which tells investors that its valuation methodology “shows considerable upside” for Stepstone, while the same methodology “shows the valuations of most in the Alt group as quite stretched,” with the other exceptions being KKR (KKR) and Carlyle (CG). The analyst adds that Stepstone is “a high-performing company, with a long track record of success in a sector with secular tailwinds.”