Upstart Holdings Sees Surge in Stock Price Amid Analyst Ratings and Improving Credit Conditions

Analyst Scoreboard: 5 Ratings For Upstart Hldgs - Upstart Hldgs (NASDAQ:UPST)

In the preceding three months, 5 analysts have released ratings for Upstart Hldgs UPST, presenting a wide array of perspectives from bullish to bearish. The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 0 1 1 2 1 Last 30D 0 1 0 0 0 1M Ago 0 0 0 0 0 2M Ago 0 0 1 0 1 3M Ago 0 0 0 2 0 The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $19.5, a high estimate of $31.00, and a low estimate of $10.00. Observing a 7.62% increase, the current average has risen from the previous average price target of $18.12. Analyzing Analyst Ratings: A Detailed Breakdown The analysis of recent analyst actions sheds light on the perception of Upstart Hldgs by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets. Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target Dan Dolev Mizuho Raises Outperform $31.00 $17.00 Vincent Caintic BTIG Announces Sell $14.00 - Simon Clinch Redburn Atlantic Raises Neutral $25.50 $22.50 Dan Dolev Mizuho Lowers Underperform $17.00 $23.00 David Chiaverini Wedbush Maintains Underperform $10.00 $10.00 Key Insights: Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Upstart Hldgs. This information provides a snapshot of how analysts perceive the current state of the company. Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Upstart Hldgs compared to the broader market. Price Targets: Analysts predict movements in price targets, offering estimates for Upstart Hldgs's future value. Examining the current and prior targets offers insights into analysts' evolving expectations. To gain a panoramic view of Upstart Hldgs's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table. Stay up to date on Upstart Hldgs analyst ratings. Delving into Upstart Hldgs's Background Upstart Holdings Inc provides credit services. The company provides a proprietary, cloud-based, artificial intelligence lending platform. The platform aggregates consumer demand for loans and connects it to the network of Upstart AI-enabled bank partners. Upstart's platform includes personal loans, automotive retail and refinance loans, home equity lines of credit and small dollar loans. Breaking Down Upstart Hldgs's Financial Performance Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity. Revenue Growth: Over the 3 months period, Upstart Hldgs showcased positive performance, achieving a revenue growth rate of 24.16% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers. Net Margin: Upstart Hldgs's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -50.55%, the company may face hurdles in effective cost management. Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of -10.35%, the company may need to address challenges in generating satisfactory returns for shareholders. Return on Assets (ROA): Upstart Hldgs's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of -3.28%, the company may face hurdles in achieving optimal financial returns. Debt Management: With a below-average debt-to-equity ratio of 1.74, Upstart Hldgs adopts a prudent financial strategy, indicating a balanced approach to debt management. What Are Analyst Ratings? Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are. Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update. Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders. This article was generated by Benzinga's automated content engine and reviewed by an editor. Market News and Data brought to you by Benzinga APIs

Mizuho highlights improving credit conditions for Upstart as shares surge By Investing.com

On Wednesday, Mizuho Securities expressed a more optimistic outlook on Upstart (NASDAQ:UPST) Holdings Inc (NASDAQ:UPST), upgrading the stock from Underperform to Outperform. The firm also increased its price target for the company's shares to $31.00, up from the previous $17.00. The revision in the stock's rating and price target comes amidst several positive indicators that suggest an improving environment for the artificial intelligence lending platform. Mizuho pointed to a combination of factors, including the potential for lower interest rates, better borrower risk profiles, lower delinquency rates on asset-backed securities (ABS) issued by Upstart, and a rise in the Unsecured Market Index (UMI) in June. Mizuho also noted encouraging industry commentary and the performance of a significant funding partner, FinWise, which is expected to contribute to Upstart's results. These developments may lead to an upward revision of the company's revenue guidance for the second half of the year. The firm's analysis indicates that Upstart's stock has not been a popular choice among investors, with no buy ratings, nine neutral stances, ten sell recommendations, and a substantial short interest of approximately 33%. However, the recent positive trends have led to a change in Mizuho's perspective. In addition to the upgrade and price target adjustment, Mizuho has increased its revenue multiple estimate for Upstart's fiscal year 2025 to five times from three times, reflecting a more confident view of the company's growth potential. In other recent news, private credit lender Castlelake has agreed to purchase consumer installment loans worth up to $1.2 billion from financial technology company Upstart. This follows a previous agreement in which Castlelake acquired $4 billion in loans from Upstart, indicating an ongoing strategic partnership between the two firms. In the analyst sphere, Upstart's stock has seen varying assessments. BTIG initiated coverage with a 'Sell' rating due to concerns about Upstart's competitiveness in the credit underwriting market. In contrast, Redburn-Atlantic upgraded Upstart from 'Sell' to 'Neutral', citing advancements in product innovation and balance sheet strength. However, Mizuho Securities reduced its price target for Upstart, maintaining the existing rating following a quarter-over-quarter decline in loan growth and increasing delinquencies. These recent developments underscore the dynamic and competitive nature of the lending industry. Following Mizuho Securities' optimistic upgrade of Upstart Holdings Inc (NASDAQ:UPST), real-time data from InvestingPro provides a deeper dive into the company's financial health and stock performance. With a market capitalization of $2.29 billion, Upstart's stock is characterized by high price volatility, a trait that investors should consider when evaluating the stock's potential for their portfolios. This aligns with the two InvestingPro Tips that highlight the stock's volatility and the analysts' consensus that Upstart may not achieve profitability this year. Despite the absence of dividend payouts, Upstart has shown a strong return over the last three months, with a price total return of 17.62%. However, the company's revenue has seen a decline of 11.55% in the last twelve months as of Q1 2023. On a positive note, the gross profit margin remains high at 74.13%, indicating that Upstart retains a significant portion of its revenue after accounting for the cost of goods sold. For investors seeking a comprehensive analysis, there are additional InvestingPro Tips available, offering deeper insights into Upstart's performance and future prospects. By using the coupon code PRONEWS24, readers can gain access to these valuable tips on InvestingPro and receive up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.