Goldman Sachs Starts Upstart Holdings Inc (UPST) at Buy

(Updated - July 12, 2021 1:25 AM EDT)

Goldman Sachs analyst Michael Ng initiates coverage on Upstart Holdings Inc (NASDAQ: UPST) with a Buy rating and a price target of $147.00.

The analyst comments "Upstart is an artificial intelligence-driven lending platform operating in the U.S. that directly aggregates demand for consumer loans and connects it to capital from the company’s bank partners and institutional buyers. Loan underwriting utilizes Upstart’s AI-based technology and credit models to provide higher approval rates and lower interest rates for customers, coupled with lower fraud rates, higher returns, and increased automation throughout the lending process for banks and institutional buyers. The company is disrupting the $92bn annual unsecured personal credit origination market and to date commands less than 4% share, though we ultimately believe the company's technology asset will allow the company to succeed in lending categories well beyond unsecured personal that in aggregate represent a multi-trillion dollar market opportunity, including auto loans, student loans, point-of-sale loans, and HELOCs/mortgages. With UPST equity trading at 13.5X 2022E EV/Sales, we believe the risk/reward in owning shares is positive given the forward catalyst path and optionality created by new asset classes (i.e. auto)."

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 $120.00 yesterday.

You May Also Be Interested In

• BofA Securities Starts Madrigal Pharmaceuticals (MDGL) at Underperform, 'pivoting to Rezdiffra commercial dynamics'
• Jefferies Upgrades Reckitt Benckiser (RKT:LN) (RBGLY) to Hold
• CLSA Downgrades Reliance Industries (RIL:IN) to Outperform (2)