Upstart initiated with Neutral on valuation at B. Riley

B. Riley last night initiated coverage of Upstart with a Neutral rating and $49 price target. Upstart is a two-sided fintech platform model that uses artificial intelligence and millions of data points to approve borrowers and match their loans to the risk appetite and lending policy of banks and financial buyers, the analyst tells investors in a research note. The firm expects the company’s loan volume to bottom and return to growth in the second half of 2023, aided by new and more permanent forms of funding. However, Riley sees the shares as fully valued after a “staggering run in the last few months.”