Stock Track | Upstart Holdings Soars 6.85% Intraday After BTIG Upgrade to 'Buy' on Bank Charter Plans

Stock Track03-16 21:37

Upstart Holdings, Inc. (UPST) saw its stock soar 6.85% during intraday trading on Monday, following a significant analyst rating change.

The sharp rise comes after BTIG upgraded the consumer lender's stock to "buy" from "neutral," setting a price target of $43. The brokerage firm highlighted that Upstart's current share value does not reflect potential upside from its plan to apply for a bank charter. This move could allow the company to cut costs and streamline its partnerships with banks, credit unions, and institutional credit funds.

BTIG analysts noted that obtaining a bank charter would address a key downside risk related to Upstart's private credit exposure by ensuring deposits remain available during liquidity crises. The $43 price target implies approximately 63% upside from the stock's previous close, with 8 of 16 brokerages now rating the stock "buy" or higher.

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