Upstart Holdings (UPST) Jumps 9.78% on “Overweight” Rating

We recently published These 10 Stocks are Stealing the Spotlight. Upstart Holdings, Inc. (NASDAQ:UPST) is one of the stocks that soared higher on Tuesday.

Upstart Holdings grew for a second day on Tuesday, jumping 9.78 percent to close at $64.85 apiece following an analyst’s bullish rating on its stock.

In a market note, Piper Sandler gave Upstart Holdings, Inc. (NASDAQ:UPST) an “overweight” rating and a price target of $75, marking an upside of 15.65 percent from its latest closing price.

The coverage was based on growth optimism for Upstart Holdings, Inc.’s (NASDAQ:UPST) near-term earnings, supported by the improvement of its artificial intelligence model, which enables more accurately priced loans.

Upstart Holdings (UPST) Jumps 9.78% on "Overweight" Rating

A close-up of a businesswoman using a laptop, being illuminated by the AI-enabled cloud interface sponsored by the company.

Additionally, Piper Sandler was optimistic about its long-term prospects, saying that traditional lending practices “are primed for technological disruption,” and that Upstart Holdings, Inc. (NASDAQ:UPST) was positioned well to penetrate a large total addressable market.

Upstart Holdings, Inc. (NASDAQ:UPST) is an AI-powered lending marketplace for personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar “relief” loans. It connects millions of consumers to more than 100 banks and credit unions that leverage its AI models and cloud applications.

While we acknowledge the potential of UPST as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.