-2.3 C
London
Friday, December 9, 2022

Upstart Spikes 8.3% with a Buy from Goldman Sachs

Must read

Shares of the AI lending platform Upstart Holdings, Inc. (UPST) spiked 8.3% after receiving a Buy rating from Goldman Sachs. The stock closed at $129.90 on July 12.

The company partners with banks to provide personal loans using non-traditional variables, such as education and employment, to predict creditworthiness. (See Upstart stock charts on TipRanks)

The stock has gained 124.4% over the past six months and has increased a whopping $340.8% over the past year.

So, What Makes the Stock So Attractive?

Yesterday, Goldman Sachs analyst Mike Ng initiated coverage on Upstart with a Buy rating and assigned a price target of $147 to the stock, implying 13.2% upside potential to current levels.

According to Ng, Upstart currently only has a 4% share of the $92bn annual unsecured personal loan origination market. Going forward, he believes the company’s AI lending platform is well-positioned to gain further market share and could also succeed in other categories, including auto loans, student loans, point-of-sale loans, and mortgages. These together would allow Upstart to benefit from a multi-trillion-dollar market.

Ng believes in the long-term growth potential of the company given its positive catalysts and exposure to new markets.

The stock commands a Strong Buy consensus rating based on 4 Buys and 1 Hold. The average Upstart price target of $144 implies 10.9% upside potential to current levels.

Also, TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Upstart, with 51% of portfolios tracked by TipRanks increasing their exposure to UPST stock over the past 30 days.

Related News:
Lithium Americas to Invest in Arena Minerals; Shares Jump
ChargePoint Stock Dips After-Hours on News of Secondary Offering
Virgin Galactic’s Flight to Space Successful; Shares Rise 10% — Report

The post Upstart Spikes 8.3% with a Buy from Goldman Sachs appeared first on TipRanks Financial Blog.

Source link

More articles

Latest article