Upstart Reported Strong Q2, But Analysts Are Concerned About Short Interest And Profitability – Here’s Why
Upstart Holdings, Inc. (NASDAQ:UPST) shares are jumping today after it reported better-than-expected second-quarter financial results and issued third-quarter revenue guidance above estimates yesterday.
The company reported an EPS loss of $0.17, which beat the analyst consensus loss estimate of $0.39, and revenue of $128 million, which beat the analyst consensus estimate of $124.54 million.
For the third quarter of 2024, Upstart expects revenue of approximately $150 million vs. the $135.36 million estimate.
Piper Sandler analyst Arvind Ramnani maintained Upstart with a Neutral and raised the price target from $28 to $31.
The analyst says that the revised guidance for the second half of the year indicates 12% Q/Q growth in the third and 14% in the fourth quarter. The company stated that the macro environment is no longer a major barrier to its business. However, management noted that a rise in unemployment could present a risk, adds the analyst.
The analyst estimates CY25 revenue to be $683 million (up from $663 million) and projects revenue growth to be 10.2% in FY24 and 20.7% in FY25.
JMP Securities analyst David M. Scharf maintained a Market Perform rating due to factors such as limited visibility into positive GAAP earnings and uncertainty about reliance on new products.
With short interest at 30% of outstanding …
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