Upstart stock drops after double downgrade

Shares of Upstart Holdings Inc. UPST, -4.15% are disconnected 3.6% successful Monday greeting trading aft Bank of America expert Nat Schindler downgraded the banal 2 notches, to underperform from buy, penning that helium sees "little country for upside" with shares up astir 800% connected the year. The S&P 500 SPX, +0.20% has gained astir 19% truthful acold successful 2021. Schindler wrote that Upstart sees accidental successful the auto-lending marketplace aft having occurrence with its artificial-intelligence-driven personal-loan business, though this caller marketplace comes with its ain challenges. "Although car loans correspond a overmuch larger [total addressable market], we besides item the higher barriers to introduction with much competitors and established, well-capitalized institutions," Schindler wrote. Upstart's existent valuation embeds "premature optimism connected Upstart's quality to instrumentality worldly shares successful the auto-lending space," helium continued. Schindler raised his terms nonsubjective to $300 from $200 successful his enactment to clients. Shares precocious changed hands adjacent $375.