Analyst Kyle Peterson of Needham reiterated a Buy rating on Upstart Holdings (UPST – Research Report), retaining the price target of $70.00.
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Kyle Peterson’s rating is based on several strategic advancements by Upstart Holdings, particularly in their use of AI technology. The company has demonstrated how AI is being utilized to enhance their underwriting model, which is expected to lower loss rates and offer consumers more competitive APRs. Additionally, Upstart is using AI to decrease customer acquisition costs and reduce labor expenses in onboarding and servicing processes. Despite limited financial disclosures, the company’s reaffirmation of its goal to achieve GAAP profitability by the second half of 2025 is seen as a promising catalyst for future growth.
Furthermore, Kyle Peterson views Upstart as a potential leader in the digital lending market, anticipating that improvements in their funding structure and business model will drive growth acceleration. These factors contribute to the confidence in maintaining a Buy rating and a target price of $70 for Upstart Holdings.
In another report released on May 7, Mizuho Securities also reiterated a Buy rating on the stock with a $85.00 price target.
Based on the recent corporate insider activity of 148 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of UPST in relation to earlier this year.