"Piper's reduction reflects a recalibration after a soft Q1 while preserving conviction in Upstart. The firm noted that FY 2026 guidance for both revenue and adjusted EBITDA remains intact, with management expecting results weighted toward the second half of 2026."
"Upstart now needs Q3 2026 and Q4 2026 originations and margins to accelerate sharply to hit the ~$1.4 billion revenue and ~$294 million adjusted EBITDA targets, and any slippage could invite further cuts."
"Upstart operates an AI-driven lending platform that originates personal, auto, and home loans funded primarily by bank and institutional partners. In Q1 2026, the company reported revenue of $308.21M, up 44% year over year, with originations up 61% year over year."
Piper Sandler reduced Upstart's price target to $46 from $56 but retained an Overweight rating, suggesting confidence in the company's long-term prospects. The adjustment follows a Q1 2026 adjusted EBITDA miss, leading to a 9% drop in stock price. Upstart's FY 2026 guidance remains unchanged, with expectations for stronger performance in the second half of the year. The company reported a revenue increase of 44% year over year but also a net loss of $6.6 million, highlighting the risks associated with its reliance on consumer credit cycles and interest rates.
Read at 24/7 Wall St.
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