Upstart Is Down 89% This Year, Now 3 Analysts Are Expressing Serious Concern On Outlook

Upstart Holdings Inc UPST Tuesday reported third-quarter results, with its performance being impacted by mid-year hikes in Fed interest rates.

Stephens On Upstart Holdings

Analyst Vincent Caintic reiterated an Underweight rating, while reducing the price target from $23 to $12.

The company’s third-quarter miss gives “low confidence” in its performance in the fourth quarter and raises concerns around its “ability to reverse cash burn,” Caintic said in a note.

“We're concerned about UPST's sustainability following 4Q22 Adjusted EBITDA guidance of -$35m (consensus +$14m) and Adjusted Loss of $40m (consensus +$17m),” he added.

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Morgan Stanley On Upstart Holdings

Analyst James Faucette maintained an Underweight rating, while lowering the price target from $15 to $11.50.

“Macro continues to pressure UPST's core origination business, with funding dynamics still unstable and loan pricing moving higher,” Faucette wrote in a note. “Expanding losses and balance sheet build increase uncertainty regarding the road ahead,” he added.

Check out other analyst stock ratings.

Piper Sandler On Upstart Holdings

Analyst Arvind Ramnani reaffirmed a Neutral rating and price target of $19.

Upstart reported another disappointing quarter, while lowering its full-year targets, Ramnani said.

“We have significantly lowered our 4Q and FY23 estimates, and highlight that FY23 could potentially be even lower,” the analyst mentioned. “The range of outcomes for FY23 remains vast given persistent macro headwinds, cautious credit markets, high interest rates and elevated consumer risk,” he added.

UPST Price Action: Shares of Upstart Holdings had declined by 16.43% to $15.91 at the time of publication on Wednesday.

Photo: Courtesy of upstart.com