Upstart takes off again: here’s why
Financial technology company Reached (NASDAQ: UPST) aims to disrupt the way banks lend money to consumers, and early results have been successful. In fact, Upstart’s business has grown so rapidly that the stock has more than increased tenfold in just nine months since the company went public.
Well, it doesn’t look like Upstart’s stock is out of gas at the moment. At 3 p.m. EDT, Upstart is about 9% higher and is trading at around $ 269 per share. And just to put that in context, Upstart went public for a share price of just $ 20 in December.
The reason for today’s decision has to do with analysts. Specifically, Atlantic Equities launched a hedge on Upstart on Tuesday, giving the fintech an overweight and a price target of $ 290. Based on the previous close, this target represented a potential upside of around 17%, so it’s not hard to see why investors are responding positively to the news.
To be perfectly clear, it’s good practice to take analyst upgrades (and downgrades) with a big grain of salt. They have absolutely no effect on the underlying activities of the business.
That said, if we take a look at Upstart’s latest results, it’s not hard to see why analysts might have a positive view of the company’s potential. In the second quarter, Upstart’s banking partners made $ 2.8 billion in loans on the platform, or 62% more quarter over quarter, and this is largely made up of personal loan volume. . The untapped auto loan market is huge and Upstart is taking a big step in it.
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