StepStone Group (STEP) Stock Forecast & Price Target

StepStone Group Inc demonstrates a positive outlook driven by anticipated EBITDA growth of 10%, attributed to heightened Canadian well completion activity and increased utilization of U.S. frac spreads, suggesting a robust demand environment. The company's consistent performance hinges on higher activity utilization and disciplined staffing, which are pivotal for enhancing pricing power and financial results within its operating segments. Additionally, the expectation of stable Canadian horsepower demand further supports a favorable business environment, reinforcing StepStone's integrated private markets solutions strategy.

StepStone Group faces a challenging outlook characterized by a projected 20% decline in EBITDA due to diminished utilization and pricing pressures in the U.S. frac services market. Additionally, the company is exposed to several risks, including industry conditions, fluctuating customer capital-spending levels, and operational execution challenges stemming from its relatively small footprint. Compounding these issues are persistent labor shortages, excess industry capacity, strong competition, and potential tariffs, all of which could adversely impact the firm's performance and market position.