Morgan Stanley recommends investors fade ‘low-quality rally’ in Upstart

Morgan Stanley says credit continues to underperform on a relative basis and recommends investors fade “what appears to be a low-quality rally” in shares of Upstart given that delinquencies remain elevated aside from minor improvement in July. The firm maintains an Underweight rating and $13 price target on Upstart shares ahead of the company’s scheduled release a Q2 results on Tuesday, August 8.