UPST - Upstart Holdings: Lower Volumes Likely To Persist
2024-04-04 21:12:01 ET
Summary
- Upstart Holdings, Inc. faces headwinds stemming from subdued loan volumes.
- We anticipate volumes to remain of concern, considering the soft credit outlook.
- About 36% of Upstart's operating costs stem from R&D, which isn't ideal as we anticipate labor demand to rise within its industry.
- Even though Upstart is running on an operating loss, its valuation and technical metrics are appealing, which phases out a hard sell argument.
- We assign a Hold rating to the stock.
Today's report examines Upstart Holdings, Inc. ( UPST ) , a novel U.S.-based credit intermediary that facilitates loans based on an applicant's 'future credit score' instead of his/her realized credit score. The company uses AI to assess peripheral factors such as an applicant's alma mater and career prospects while considering certain macroeconomic variables....
Upstart Holdings: Lower Volumes Likely To Persist