Upstart reinstated with an Underperform at BofA

BofA reinstated coverage of Upstart with an Underperform rating and $22 price target. Upstart has many hurdles to overcome to regain confidence by lenders and investors, the analyst says. The three key debates around the “expensive” stock are the power of Upstart’s AI underwriting model, how fast lending volumes will rebound, and the balance sheet as a funding source, the firm argues.