Upstart gets analyst upgrades on strong Q4, upbeat 2025 outlook

Investing.com -- Upstart Holdings Inc (NASDAQ: UPST) stock got JP Morgan and B. Riley upgrade after posting stronger-than-expected fourth-quarter results and issuing an upbeat 2025 outlook on a sharp rebound in growth.

JPMorgan upgraded Upstart to "Neutral" from "Underweight" and raised its December 2025 price target to $79 from $57, citing a snapback in origination volume and adjusted EBITDA margins to their highest levels since 2022.

The brokerage credited improving conversion rates and funding availability, driven by underwriting model enhancements and a better macro environment, as key drivers of the turnaround.

B. Riley Securities also upgraded Upstart to "Buy" from "Neutral" and hiked its price target to $105 from $49 after what it called a "striking acceleration in growth."

The firm highlighted Upstart’s fourth-quarter revenue of $218 million—well above its $180 million forecast—and adjusted EBITDA of $39 million, far exceeding expectations of $5 million. It now expects Upstart’s revenue growth to accelerate to 57% in 2025, up from 24% in 2024, as the company benefits from improving macro conditions and a scalable fee-based model.

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