An improved macroeconomic outlook could boost Upstart Holdings shares, JPMorgan said on Wednesday. The firm upgraded the online lender to overweight from neutral but cut its price target on the name to $88 from $93. That updated target still implies nearly 43% upside from Tuesday’s close. “We lean positive on the more seasoned fintech lenders, given a favorable macro backdrop (e.g., stable credit and potential rate cuts), and we believe Upstart offers the best risk/reward among personal loan originators (e.g., Neutral-rated SoFi and LendingClub),” analyst Reginald Smith wrote in a note to clients. UPST 1M mountain UPST, 1-month The move comes as shares of the company have underperformed in 2025, being little changed in the period, while the S & P 500 has risen around 9%. The stock has also fallen more than 21% in the past month on the heels of its latest quarterly results. Smith pointed out that the stock’s underperformance has been spurred mainly by concerns about the company’s balance sheet growth trajectory and a new convertible issuance. However, the analyst believes that it could be poised for solid gains. “Loan buyer demand remains strong, and we see opportunity for continued notional loan growth and margin expansion,” he said. Smith’s call is in the minority of analysts on Wall Street, joining the six total analysts covering the stock out of 15 that have a strong buy or buy rating, per LSEG. Eight, by contrast, have stepped to the sidelines with a hold rating. Shares were about 3% higher in the premarket Wednesday following the upgrade.
