In a report released today, Mihir Bhatia from Bank of America Securities reiterated a Hold rating on Upstart Holdings, with a price target of $71.00.
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Mihir Bhatia’s rating is based on several key factors impacting Upstart Holdings. The company’s third-quarter results were below expectations, primarily due to the AI model’s tighter underwriting, which led to lower-than-anticipated revenues and loan originations. This unexpected tightening has created uncertainty in the company’s outlook and estimates, prompting a cautious stance.
Additionally, Upstart has lowered its full-year 2025 revenue outlook, reflecting softer origination trends. Despite some positive aspects, such as improved efficiency in customer acquisitions and increased loan inquiries, the decline in conversion rates and smaller loan approvals have pressured the company’s performance. Consequently, the price objective has been adjusted to $71, reflecting these challenges and uncertainties.
Bhatia covers the Financial sector, focusing on stocks such as Synchrony Financial, American Express, and Rocket Companies. According to TipRanks, Bhatia has an average return of 7.1% and a 60.91% success rate on recommended stocks.