Figma Shares Indicated To Open $105/$110
On Thursday, BofA Securities analyst Nat Schindler updated the firm’s outlook on Upstart Holdings Inc (NASDAQ:UPST), raising the price target to $53 from the previous $39, while maintaining an Underperform rating on the company’s shares. According to InvestingPro data, the stock appears overvalued at current levels, with analyst targets ranging from $15 to $110. Schindler acknowledged Upstart’s impressive performance over the past year, noting significant improvements in funding, partner profile, profitability, and product expansion.
Schindler’s comments highlighted the company’s trajectory towards profitability by 2025 and its potential to achieve over 50% year-over-year revenue growth. Despite these positive developments, the analyst expressed caution due to the stock’s substantial increase in value, with Upstart shares climbing 165% year-over-year and 12% year-to-date. This surge outpaces the S&P 500’s gains of 17% and 1% over the same periods.
The current valuation of Upstart, at 7.0 times and 5.7 times consensus 2025 and 2026 enterprise value to revenues, respectively, was a particular point of concern for Schindler. The analyst suggested that at these levels, the risk/reward balance might lean towards the downside, leading to the decision to reiterate the Underperform rating despite the raised price target. InvestingPro analysis reveals additional insights through 12+ exclusive ProTips and comprehensive valuation metrics available to subscribers.
Upstart’s stock movement reflects the broader market’s response to the company’s financial health and growth prospects. Investors are monitoring the stock closely, especially in light of the significant year-over-year increase and the analyst’s cautious stance on its valuation.
The updated price target and rating from BofA Securities come as Upstart continues to navigate the competitive fintech landscape, aiming to sustain its growth momentum and move towards profitability in the coming years.
In other recent news, Upstart Holdings, Inc. reported strong fourth-quarter 2024 financial results, with revenue reaching $219 million, significantly surpassing analyst expectations of $182.07 million. The company also provided an optimistic outlook for 2025, projecting full-year revenue of approximately $1 billion, well above the analyst consensus of $823.14 million. In addition to these earnings highlights, Upstart announced a $500 million at-the-market equity offering program, aimed at raising capital for general corporate purposes. Furthermore, Citi and Mizuho (NYSE:MFG) Securities have both raised their price targets for Upstart, citing improved financial outlooks and potential for continued outperformance. Citi increased its target to $108 from $87, while Mizuho adjusted its target to $110 from $90. Upstart also welcomed Peter Bernard to its Board of Directors, bringing significant expertise in banking and risk management. These developments come as Upstart continues to expand its AI lending platform and navigate a challenging economic environment.
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