Upstart Holdings, Inc. ( UPST ) shares are trading higher Monday following an upgrade by Wedbush analyst David Chiaverini. The firm raised its rating from Underperform to Neutral, while significantly increasing its price target from $10 to $45.

What To Know: Chiaverini highlighted that Upstart’s ability to diversify its funding base through long-term capital providers, along with stronger credit buyer demand, is positioning the company for a potential rebound. The analyst noted that recent Asset Backed Securities deals have shown better-than-expected delinquency performance, marking a positive shift for the company after several challenging quarters. However, he cautioned that while recent improvements are encouraging, the company's ability to scale originations while maintaining credit performance remains a key question moving forward.

Analyst Opinions: Analysts have given mixed ratings for Upstart Holdings ( UPST ), with a current average 12-month price target of $32.22, up 53.43% from the previous $21.00. Key upgrades include Wedbush raising its target to $45.00 and Mizuho to $48.00.

What Else: Upstart's market capitalization now stands at approximately $4.16 billion, with shares trading near the upper end of their 52-week range, reflecting the renewed confidence in its long-term growth trajectory.

UPST Price Action: Upstart Holdings ( UPST ) shares were up by 17.3% at $55.16 at the time of writing, according to Benzinga Pro.

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Image: courtesy of Upstart Holdings Inc. ( UPST )