JPMorgan says Upstart ‘out of the woods,’ upgrades to Neutral

As previously reported, JPMorgan upgraded Upstart (UPST) to Neutral from Underweight with a price target of $45, up from $30, after the company reported a strong top-line beat and returned to adjusted EBITDA profitability in Q3. Loan performance has steadily improved over the last several quarters and new originations are now expected to generate higher returns than pre-pandemic vintages, notes the analyst, who contends that Upstart is “seemingly out of the woods.” The firm is increasingly encouraged by the company’s committed capital base and improving credit performance, the analyst added.