Goldman Sachs assumes coverage on Upstart stock with Sell rating
Investing.com
Published Jul 14, 2025 06:44AM ET
Investing.com - Goldman Sachs has assumed coverage on Upstart Holdings Inc (NASDAQ:UPST) with a Sell rating and a $71.00 price target, implying approximately 10% downside potential. According to InvestingPro data, the stock currently trades at $75.62, with a price-to-book ratio of 10.6x and has shown significant volatility with a beta of 2.37.
The investment bank maintained the previous Sell rating as analyst coverage transferred from Mike Ng, noting that the downside projection for Upstart compares to an average of approximately -0.01% downside for Goldman's coverage universe.
Goldman Sachs recognizes Upstart as a leading marketplace lender with sophisticated machine learning models that enable better risk pricing compared to competitors, though it noted the company did not significantly outperform during the last period of consumer credit weakness.
Despite acknowledging Upstart's positioning to avoid adverse credit selection in the marketplace lending space, Goldman cited concerns about limited progress in developing long-term consumer relationships.
The bank also expressed reservations about Upstart's business model, describing the online personal loan market as competitive and indirect, with heavy reliance on cyclical third-party funding sources.
In other recent news, Upstart Holdings, Inc. reported its first-quarter 2025 earnings, revealing a significant earnings beat with an adjusted EPS of $0.30, surpassing the forecasted $0.17. The company's revenue also exceeded expectations, reaching $213 million against a projected $201.13 million, marking a 67% year-over-year increase. Upstart's quarterly results demonstrated a notable outperformance in originations, exceeding Citi and broader market expectations by 7% to 10%, and the company announced a new $1.2 billion forward flow agreement with Fortress. Despite these positive financial results, the stock experienced a decline in after-hours trading, attributed to unmet higher estimates from a third-party data service. Additionally, Citi analysts adjusted their price target for Upstart to $83 from $108, while maintaining a Buy rating, citing the macroeconomic environment's uncertainties. Meanwhile, Needham reiterated a Buy rating with a $70 price target, reflecting confidence in Upstart's strategy and growth potential. Furthermore, Upstart's recent stockholder meeting ratified the appointment of Deloitte & Touche LLP as the independent accounting firm and approved executive compensation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.