Citizens cuts Upstart stock price target to $18 on bank charter concerns

Citizens has reduced its price target for Upstart Holdings Inc. (NASDAQ: UPST) to $18 from $20, maintaining a Market Underperform rating. The stock is currently trading at $22.74, close to its 52-week low of $22.21, with a year-to-date decline of 48%. Analyst David Scharf highlighted the recent Enova International's application withdrawal for regulatory approval to acquire Grasshopper Bank, suggesting similar concerns for other fintechs pursuing national bank charters.

Upstart is among 10+ fintechs with pending national bank charters, including OppFi, Affirm Holdings, Klarna, OneMain Financial, and others. Investors can explore a Pro Research Report for a detailed analysis of Upstart's financials and strategy. The firm retains Market Outperform ratings for OppFi ($11 target), Affirm Holdings ($85 target), and OneMain Financial ($67 target).

Upstart reported a mixed second-quarter 2026 performance, hitting revenue of $364.7 million, beating analyst expectations, but missing EPS estimates. GAAP profitability was restored, with September origination volumes rising 44.2% year-over-year. Competitors' views vary, with Needham reiterating a Buy rating, Loop Capital initiating coverage with a Hold rating, and Mizuho maintaining an Outperform rating with conservative 2026 guidance.