In a report released yesterday, Mihir Bhatia from Bank of America Securities reiterated a Hold rating on Upstart Holdings, with a price target of $87.00.
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Mihir Bhatia has given his Hold rating due to a combination of factors influencing Upstart Holdings. Despite the company’s strong execution and impressive second-quarter performance, the expectations were already high, leading to some investor disappointment. The modest increase in the full-year 2025 revenue outlook, which was not as significant as anticipated, contributed to this sentiment.
Additionally, while there was notable growth in transaction volumes across all verticals, the continuing pressure on take rates remains a concern. The take rate for the second quarter was slightly below consensus expectations, and although improvements were noted in the core personal loan product, this was counterbalanced by lower margins in newer products. These factors, combined with the high valuation of the stock, suggest a balanced risk/reward scenario, justifying the Hold rating.
According to TipRanks, Bhatia is a 4-star analyst with an average return of 8.9% and a 63.80% success rate. Bhatia covers the Financial sector, focusing on stocks such as Synchrony Financial, Capital One Financial, and American Express.
In another report released on July 24, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $92.00 price target.