Upstart (UPST) announced the launch of Upstart Auto Retail software with AI-enabled auto loans. Notably, dealers will be able to provide a fully comprehensive shopping experience that consumers demand, from shopping and vehicle selection to financing and check-out.
So far in 2021, the company noticed that the registration of dealerships has nearly tripled. In Q2, more than $1 billion worth of vehicles were sold through the Upstart Auto Retail platform. Furthermore, with the inclusion of Upstart-powered loans, those dealerships will be able to offer affordable financing to their customers.
AI-powered lending is currently being rolled out to a limited number of dealers. It will be available to all dealers using the platform beginning in early 2022. (See Upstart stock charts on TipRanks)
Upstart CEO and Co-Founder, Dave Girouard, said, “Buying a car is an iconic and memorable experience for most Americans, but the financing step is where things often unravel. Upstart Auto Retail will provide millions of consumers with a car buying experience worthy of 2021, including that all-important financing step.”
Last month, Citigroup analyst Peter Christiansen downgraded Upstart to a Hold from a Buy with a price target of $350 (upside potential of 13.8% from current levels).
The analyst is optimistic that loan growth momentum will continue, and volumes in autos will materialize in 2022. However, given the 644% rise in the stock price year-to-date, he advises investors to wait for a better entry point.
Consensus among other Wall Street analysts is a Strong Buy based on 6 Buys and 1 Hold. The average Upstart price target of $261.29 implies 15.1% downside potential to current levels.
Furthermore, Upstart scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.