SC - Upstart Holdings surges higher after Goldman initiates at Buy on AI benefits

solarseven/iStock via Getty ImagesUpstart Holdings (UPST) climbs 7.1% in early trading after Goldman Sachs analyst Michael Ng initiates coverage with a Buy rating on the premise that the fintech lender's artificial intelligence enables better borrowing selection, price efficiency, and ability to offer lower APRs for better risk-adjusted returns over the long-term.Sets $147/share price target, implying 18.8% upside from where it's currently trading; target is based on 16X next twelve months + 1 year enterprise value/sales and it's trading at 13/5X 2022 estimate EV/sales.Ng sees upside-risk to near-term numbers if Upstart can sign on new bank partners, the consumer lending market recovers, and benefit from the Prodigy acquisition for auto lending.The Buy rating agrees with the Bullish average author rating (2 Very Bullish, 6 Bullish, 1 Bearish) and the Bullish Wall St. analysts rating (2 Very Bullish, 2 Bullish, 2 Neutral).According to the chart below, on a Y/Y basis the total return for UPST (+500%) outperforms

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Upstart Holdings surges higher after Goldman initiates at Buy on AI benefits