UPST - Upstart: Consumer Sentiment Positive But Risks Remain (Rating Downgrade)

2024-04-24 00:23:00 ET

Summary

• Upstart's business fundamentals have been improving, regardless of the macro environment.
• Interest rate cuts remain a key catalyst for UPST being rerated higher.
• Consumer Sentiment could also be a leading indicator for strong updates in the next twelve months.
• Upstart's balance sheet and worsening household balance sheets could be negative for Upstart and are keeping me on the sidelines for now.

Almost a year ago, I penned a draft for Upstart ( UPST ) titled: Upstart: Too hard basket until interest rates turn . I had expected the nearing quarterly report to be negative, but instead it was very positive, and instead I completely rewrote the article as “ A leaner Upstart can grow from here ” and rated the stock a buy....

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