Upstart Holdings (UPST – Research Report), the Financial sector company, was revisited by a Wall Street analyst today. Analyst James Faucette from Morgan Stanley maintained a Hold rating on the stock and has a $50.00 price target.
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James Faucette has given his Hold rating due to a combination of factors concerning Upstart Holdings. The company’s repayment data is currently aligning with expectations, and there is potential for macroeconomic improvements to boost origination volumes. However, returning to the origination levels seen in 2022 will take time, as it is expected to require several years to reach those peaks again, even with model improvements.
Despite the macroeconomic volatility, Upstart has not observed any adverse repayment trends since Labor Day, which is a positive sign. Additionally, banking deregulation could potentially act as a catalyst for direct lending, as it may encourage banks to adopt Upstart’s technology. While there has been no impact from student loan repayments yet, the overall environment suggests a cautious approach, justifying the Hold rating.
Faucette covers the Technology sector, focusing on stocks such as Endava, Block, and Accenture. According to TipRanks, Faucette has an average return of 5.3% and a 63.90% success rate on recommended stocks.
In another report released yesterday, Stephens also initiated coverage with a Hold rating on the stock with a $55.00 price target.