Piper Sandler Upgrades Upstart Holdings Inc (UPST) to Overweight

Piper Sandler analyst Arvind Ramnani upgraded Upstart Holdings Inc (NASDAQ: UPST) from Neutral to Overweight with a price target of $85.00 (from $31.00).

The analyst comments: "We are upgrading UPST to OW and raising our PT to $85, as the company benefits from a more accommodative rate environment, improved lending dynamics and upgrades to its lending model. Importantly, 3Q performance was primarily driven by improvements in its lending model and also helped by the lower interest rates. Further, the company’s partnership with Blue Owl enables it to purchase $2B in loans over the next 18 months. Including Blue Owl, UPST now has over half of its loan funding from committed capital, which in our view introduces a degree of stability to its business model. On our callback, management indicated it has similar partnership discussions in its pipeline, which should further fortify the company's lending capabilities. Several components of these positive developments were reflected in 3Q’s performance, and we expect further upside as interest rate cuts get reflected in UPST's business model."

For an analyst ratings summary and ratings history on Upstart Holdings Inc click here. For more ratings news on Upstart Holdings Inc click here.

Shares of Upstart Holdings Inc closed at $55.47 yesterday.

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