Citizens Keeps Market Perform Rating on Upstart Holdings (UPST)

Upstart Holdings, Inc. (NASDAQ:UPST) is one of the 12 Best Fintech Stocks to Buy According to Analysts. On October 13, Citizens reaffirmed its Market Perform rating for Upstart Holdings, Inc. (NASDAQ:UPST).

This decision comes as consumer finance company stocks have pulled back from their recent highs. This performance is driven by rising concerns about subprime credit trends.

Citizens pointed out that there are “isolated indications of rising delinquencies among selected subprime auto and personal loan lenders.” Upstart Holdings, Inc. (NASDAQ:UPST) was mentioned among the companies affected by this trend. The firm also noted that the lending market is focusing more on undocumented borrowers.

Citizens highlighted the “increasing speculation over the resumption of student loan repayments, and renewed focus on tariff impacts on prices” are additional factors that are contributing to a cautious outlook on consumer lenders like Upstart Holdings, Inc. (NASDAQ:UPST).

Upstart Holdings, Inc. (NASDAQ:UPST) is a financial technology company that operates a cloud-based AI lending platform in the US. It partners with banks and credit unions to offer personal loans, automotive retail and refinance loans, home equity lines of credit, and small-dollar “relief” loans.

While we acknowledge the potential of UPST as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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