Analyst Kyle Peterson of Needham reiterated a Buy rating on Upstart Holdings (UPST – Research Report), reducing the price target to $70.00.
Kyle Peterson has given his Buy rating due to a combination of factors that indicate strong performance and potential for Upstart Holdings. The company’s recent financial results surpassed market expectations, both in terms of revenue and net income, driven by robust loan growth and better-than-anticipated net interest income. Additionally, the announcement of a significant $1.2 billion forward flow agreement with Fortress provides further validation of Upstart’s business model and enhances its funding visibility.
Kyle Peterson also notes that while the guidance for the second quarter was solid and the full-year outlook has been slightly increased, the stock experienced a pullback due to high expectations prior to the earnings release. Despite this, he sees the current weakness as a buying opportunity, believing that Upstart will continue to outperform and gain market share in the digital lending sector. Consequently, he maintains a Buy rating, although he has adjusted the target price to $70 to account for more conservative growth expectations in the FinTech sector.
According to TipRanks, Peterson is a 3-star analyst with an average return of 2.7% and a 47.75% success rate. Peterson covers the Technology sector, focusing on stocks such as Fair Isaac, Alight, and Broadridge Financial Solutions.
In another report released today, Citi also maintained a Buy rating on the stock with a $83.00 price target.