Investing.com - Piper Sandler assumed coverage on Upstart Holdings Inc (NASDAQ: UPST ) with an overweight rating and set a price target of $75.00, according to a research note released Tuesday. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.

The research firm cited significant upside potential to Upstart’s near-term earnings as the company’s artificial intelligence lending model improves and enables more accurately priced loans. InvestingPro data shows the company’s revenue growth rate at 45% year-over-year, with a gross margin of 68%.

Piper Sandler analyst Patrick Moley noted this potential exists "barring unexpected macro driven interest rate cuts and/or a decline in borrower health."

The firm expressed confidence in Upstart’s long-term prospects, stating that "traditional lending practices are primed for technological disruption."

Piper Sandler believes Upstart is "positioned well to penetrate a very large TAM," referring to the company’s total addressable market in the lending industry.

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