Trade Call: Upgrade to Buy UPST with Significant Upside

3 days ago

Parkev Tatevosian, CFA

"So if the company's on track and all else remains equal, the share price could rise all the way to $84 by the end of next year. That would be a nice increase from the current stock price of $52 per share. That would be an almost 60% increase in a little over one year. But what I see as a more likely scenario actually is the forward PE multiple increasing. And if we're to increase to 30, the stock price could rise to $97 a share, a much better increase closer to 80%. If the forward PE ratio were to increase to 35, a scenario I don't see as the most likely. The share price could rise to $113 per share. And that's one of the reasons why I recently upgraded Upstart Stock to a buy."

The speaker provides an actionable trade call for UPST, outlining multiple scenarios where rising forward PE multiples could drive the stock price significantly higher. He forecasts a potential increase from $52 to between $84 and $113 per share, and based on this scenario analysis, he upgraded UPST to a buy.

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