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Upstart Shares Jump as Analysts Laud AI-Lending Progress

Upstart registered adjusted profit of 62 cents a share, more than double the Bloomberg analyst consensus of 25 cents. The stock is higher.
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Upstart  (UPST) - Get Upstart Holdings, Inc. Report shares on Wednesday jumped after the artificial-intelligence-based lending platform reported second-quarter results that topped forecasts and analysts reacted positively.

The stock recently traded at $168.90, up 24%, leaving it up 84% for the past six months.

Upstart registered adjusted profit of 62 cents a share, more than double the Bloomberg analyst consensus estimate of 25 cents. Sales totaled $193.9 million, exceeding expectations of $157.2 million.

As for the analysts, Citi upgraded Upstart to buy from neutral and raised its price target to $205 from $120. The new target matches the Wall Street high, Bloomberg reports.

The San Mateo, Calif., company’s results and outlook are “compelling enough, … [and] coupled with rapid progress in building out the auto lending platform, we think there’s reasonable upside in the stock, even from here,” Citi analysts said.

Piper Sandler boosted its price target to $191 from $152, affirming an overweight rating.

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Upstart generated “impressive beats … [and] continued to drive improvements” across its core underwriting capabilities, marketing segment and partnership network, Piper analysts said, according to Bloomberg.

Will These Triggers Make You an Upstart? Real Money

TheStreet.com Founder Jim Cramer talked up Upstart last month. "I don't understand the short position in this stock. This company is really good," he said.

TheStreet.com also cited the stock as a buy-the-dip candidate in June.

“Upstart boosted its full-year revenue guidance and received price-target upgrades from Wall Street analysts,” the analysis read.

“For fiscal 2021 Upstart expects $600 million in revenue, 20% higher than its previous estimate of $500 million. The company also reported a second-quarter-revenue forecast that topped expectations and first-quarter results that were better than expected.”