J.P. Morgan Securities downgraded UPST to "underweight" from "neutral"
The shares of artificial intelligence (AI) lending marketplace Upstart Holdings Inc (NASDAQ:UPST) are down 13.9% at $67.83 at last glance, after a downgrade from J.P. Morgan Securities to "underweight" from "neutral," though the firm also added a price-target hike to $57 from $45. The analyst in coverage expects the funding environment to improve in 2025.
Pacing for its worst single-day percentage loss since February, Upstart stock is pulling back from its Nov. 11, two-year high of $86.07. Shares are testing recent support at their 20-day moving average, and still sport a 65.4% year-to-date lead.
Today's bear note adds to the pessimism already surrounding UPST. Of the 16 in coverage, only three brokerages carry a "buy" or better rating. Plus, the 12-month consensus price target of $50.18 is a 25.9% discount to current levels.
When weighing in on UPST's next move, options look like a decent way to go. The equity's Schaeffer's Volatility Index (SVI) of 84% sits in the low 18th percentile of its annual range, meaning options traders are pricing in low volatility expectations at the moment.