Sam Boughedda

Investing.com — Shares of Upstart Holdings Inc (NASDAQ:) have fallen more than 17% after Wedbush analyst David Chiaverini cut the firm’s price target on the stock to $15 from $20 before the open on Friday.

An analyst maintained an Underperform rating for the shares, and noted that Upstart loan securitizations are in process at $649 Million.

Chiaverini said also that Kroll Bond Rating Agency had issued a pre-sale report for Thursday’s loans. It stated that most deal metrics indicated the ABS. [asset-backed securities] market is getting more difficult.”

Kroll didn’t provide issuer ratings of class B and C notes, which is an unusual departure from the company’s usual practices. The analyst wrote, “We can infer that there may have not been enough credit enhancement support an investment-grade rating on the Class B notes.”

Chiaverini’s Upstart rating of Underperform “is based upon weakening loss trends and delinquency on recent 2021 securitizations which seem to be deteriorating more than Kroll’s base case scenarios, and at an even faster rate than the 2018, 2019, or 2020 vintages.”