Needham raises Upstart stock price target to $82 on strong Q2 results

Published 06/08/2025, 18:06
Needham raises Upstart stock price target to $82 on strong Q2 results

Investing.com - Needham has raised its price target on Upstart Holdings Inc (NASDAQ:UPST) to $82.00 from $70.00 while maintaining a Buy rating following the company’s second-quarter results. The stock, currently trading at $68.64, has delivered an impressive 246% return over the past year.

The fintech firm posted quarterly results that exceeded Wall Street expectations for both revenue and earnings, according to Needham. With revenue growing at 53.62% and maintaining a strong gross margin of 81.17%, Upstart also achieved GAAP profitability during the quarter, which the research firm considers an important benchmark. InvestingPro data shows the company maintains a healthy current ratio of 13.58, indicating strong financial stability.

Despite the strong performance, Upstart shares fell more than 15% intraday as the company’s guidance for future revenue growth was more modest than investors had anticipated heading into the earnings report.

Needham characterized the quarter as "solid" despite market reaction and recommended investors use the share price pullback as a buying opportunity, citing "strong underlying momentum in the business."

The research firm raised its financial estimates for Upstart while reiterating its Buy rating and increasing the price target by $12 to $82.00.

In other recent news, Upstart Holdings Inc. reported impressive financial results for the second quarter of 2025, marking a significant milestone as it achieved profitability for the first time since 2022. The company delivered earnings per share of $0.36, which was 50% higher than the projected $0.24. Additionally, Upstart’s revenue reached $257 million, surpassing expectations by 14%. These results highlight a strong performance and were well-received by investors. The company’s positive earnings announcement is a notable development for stakeholders. While stock price movements were observed, they are not the focus here. The earnings results are considered a critical indicator of Upstart’s financial health. These recent developments have positioned Upstart in a favorable light within the investment community.

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