UPST - Upstart: Buy Weakness (Rating Upgrade)
2024-06-12 08:39:05 ET
Summary
- Upstart has seen slumps in the personal loans business due to interest rate hikes, but the AI lending model excitement leads to potential growth.
- Despite meager growth forecasts from analysts, Upstart has potential to exceed previous revenue levels with AI lending hype and a larger market opportunity.
- The stock tends to see huge rallies on AI hype and the potential for a return to $1+ billion in annual revenue makes the stock appealing at $2 billion.
While the personal loans business has been tough the last couple of years since the Fed starting hiking interest rates, Upstart Holdings, Inc. ( UPST ) always sees outsized gains on excitement over their AI lending model. The stock has again slumped to the low $20s where the valuation is more appealing. My investment thesis is now Bullish on Upstart with the potential for rate cuts around the corner to drive growth in the business....
Upstart: Buy Weakness (Rating Upgrade)