By Sam Bugeda
Investing.com – Shares of Upstart Holdings Inc. (NASDAQ: UPST) fell more than 17% as Wadebush analyst David Chiaverini lowered the firm’s price target on the stock from $ 20 to $ 15 before opening on Friday.
Analysts have placed an underperform rating on the shares and noted a new $ 649 million pending securitization of upstart debt.
Chiaverini added that the Kroll Bond Rating Agency released a preseason report on Thursday for the loan, stating that “most deal metrics refer to ABS. [asset-backed securities] The market is getting tougher. “
In addition, he added that Kroll did not provide issuer ratings on the Class B and Class C notes for this agreement, which is a departure from his regular practice. The analyst wrote, “We can assume that there may not be enough credit enhancement to support the grade rating of investments in Class B notes.”
Chiaverini’s underperformance rating at Upstart “is based on the recent 2021 Vintage Securitization vulnerability / loss trend which is worse than Kroll’s base case situation and appears to be deteriorating faster than its 2018, 2019 and 2020 vintage.”
Upstart is submerged after reducing the Wedbush price target
US stocks mixed to stop trading; Dow Jones Industrial Average 0.03%
The WHO has called the emergency meeting as the top 100 monkeypox cases in Europe