Loop Capital analyst Hal Goestch upgraded Upstart Holdings Inc (NASDAQ: UPST) from Hold to Buy with a price target of $24.00.

The analyst commented, "We are upgrading our rating on the shares of UPST to Buy from Hold today as it has reached a level that we believe provides relative outperformance to our $24 price target. Our price target is based on 2.5x our 2024 revenue forecast, which is very reasonable for a platform business model. The company reported difficult numbers for its Q4 last night (volume down 63%) and an ugly guide for Q1 (volume estimated to be down 70%). However, we think the odds are that the TTM ending Q2:23 will be end of the worst of times, not the beginning. UPST’s announced cost cuts and a 20% headcount reduction, but the company is on a path to be EBITDA positive late in 2023 or 2024. We believe UPST is closer to the very end of a difficult period for participants on both sides of its platform. The demand side for loans is very high as core UPST consumers have jobs yet are running out of savings and liquidity after several years of stimulus. Lenders on the UPST platform have backed away. We believe UPST is close to finding more permanent and consistent capital partners on its platform and alluded to this possibility on the call last night."

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Shares of Upstart Holdings Inc closed at $16.85 yesterday.