Upstart Nearing Inflection Point? 2 Analysts Examine Opportunities And Challenges Post-Q1 Earnings
Portfolio Pulse from Nabaparna Bhattacharya
Upstart Holdings, Inc. (NASDAQ:UPST) reported Q1 earnings with revenue of $128 million, surpassing estimates but provided Q2 guidance below expectations. JPMorgan maintained an Underweight rating with a $24 price target, while Needham reiterated a Hold rating. Despite challenges, analysts see potential due to Upstart's data advantage and committed capital, but caution on near-term outlook due to credit performance issues.
May 08, 2024 | 6:48 pm
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NEGATIVE IMPACT
Upstart reported higher than expected Q1 revenue but issued weak Q2 guidance. JPMorgan and Needham provided cautious outlooks, highlighting both opportunities and challenges ahead.
The negative short-term impact on UPST's stock price is primarily due to the issuance of Q2 revenue guidance below market expectations, despite beating Q1 estimates. Analysts' cautious outlooks, especially regarding credit performance and market conditions, further contribute to the bearish sentiment. The drop in share price following the earnings report reflects these concerns.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100