Upstart Holdings Soars as Analysts Upgrade Ratings: A New Era of Growth and Trading Opportunities

Upstart Holdings Inc (NASDAQ:UPST) has received significant upgrades from analysts, buoyed by robust fourth-quarter results and an optimistic outlook for 2025.

JP Morgan, taking notice of the company’s recent performance, upgraded Upstart's rating from "Underweight" to "Neutral," lifting its price target for December 2025 to $79—up from a previous target of $57. This uplift is largely attributed to a noticeable rebound in origination volumes and impressive adjusted EBITDA margins, which have risen to peak levels not seen since 2022. The bank noted that enhancements in the underwriting model and better macroeconomic conditions were pivotal in driving this turnaround.

Meanwhile, B. Riley Securities has even more faith in Upstart's potential, moving its rating from "Neutral" to "Buy" and substantially increasing its price target to $105 from $49. The firm is exuberant about the company's fourth-quarter revenue of $218 million, far surpassing their $180 million forecast, along with adjusted EBITDA of $39 million, which blew past the expected $5 million. Much to traders’ delight, B. Riley anticipates that Upstart's revenue growth will accelerate to a staggering 57% in 2025 from 24% in 2024, largely due to favorable macro conditions and a scalable fee-based business model.

Upstart’s road to recovery indicates a solid comeback, and trading enthusiasts might want to keep a close eye on fluctuations in its stock value as the company navigates this phase.