Upstart Holdings Soars 17% After Analyst Update : What You Need To Know

Upstart Holdings, Inc. UPST shares are trading higher Monday following an upgrade by Wedbush analyst David Chiaverini. The firm raised its rating from Underperform to Neutral, while significantly increasing its price target from $10 to $45.

What To Know: Chiaverini highlighted that Upstart’s ability to diversify its funding base through long-term capital providers, along with stronger credit buyer demand, is positioning the company for a potential rebound. The analyst noted that recent Asset Backed Securities deals have shown better-than-expected delinquency performance, marking a positive shift for the company after several challenging quarters. However, he cautioned that while recent improvements are encouraging, the company's ability to scale originations while maintaining credit performance remains a key question moving forward.

Analyst Opinions: Analysts have given mixed ratings for Upstart Holdings, with a current average 12-month price target of $32.22, up 53.43% from the previous $21.00. Key upgrades include Wedbush raising its target to $45.00 and Mizuho to $48.00.

What Else: Upstart's market capitalization now stands at approximately $4.16 billion, with shares trading near the upper end of their 52-week range, reflecting the renewed confidence in its long-term growth trajectory.

UPST Price Action: Upstart Holdings shares were up by 17.3% at $55.16 at the time of writing, according to Benzinga Pro.

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Image: courtesy of Upstart Holdings Inc.