Upstart Holdings falls after J.P. Morgan cuts to 'underweight'

Upstart Holdings

02/12/2024 12:52

** AI lending platform Upstart Holdings'  UPST.O  shares
fall 5% to $74.89 premarket
    ** J.P. Morgan downgrades UPST to "underweight" from
"neutral" 
    ** Brokerage says that although it expects loan funding to
improve in 2025, UPST's valuation already reflects that with
shares trading at nine times forward sales
    ** JPM says that UPST was doing ~$13 bln in annualized
transaction volume - eight times its current run rate - the last
time the stock traded above $70 
    ** But brokerage raises UPST's PT to $57 from $45 — a 27.7%
downside to stock's last close
    ** Three of 16 brokerages rate the stock "buy" or higher,
eight "hold" and five "sell" or lower; median PT is $47 - LSEG
data
    ** As of last close, UPST shares up 92.8% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))