Upstart initiated with an Equal Weight at Stephens

Stephens analyst Kyle Joseph initiated coverage of Upstart (UPST) with an Equal Weight rating and $55 price target Looking at the FinTech space, the analyst weighs the limited operating histories and performance along with recent capital inflows when evaluating the eight stocks on which the firm initiated coverage. For Upstart in particular, the analyst is wary of growth in excess of the market given its financials focus. While having observed numerous examples of technology underwriting models and seen improved efficiency, the firm has yet to see substantial outperformance of the market, cautioning that historically, “we have seen those that have grown the fastest into cycles have fared the worst in macro shifts.”