Investing.com -- Shares of Upstart (NASDAQ:UPST) surged 7% following the announcement of a strategic partnership with OneProgress Services LLC, a fintech company majorly owned by retail giant Walmart (NYSE:WMT) Inc. The collaboration is set to market Upstart’s consumer lending products to Walmart’s extensive customer base, including co-branded direct mail campaigns.
Despite Upstart’s statement that the partnership is not expected to materially impact its financial condition or results for the fiscal year ending December 31, 2025, investors responded positively to the news. The market movement reflects optimism around the potential for Upstart to leverage Walmart’s considerable reach, which sees approximately 270 million customers per week.
Mizuho analyst Dan Dolev commented on the partnership, stating, "We view the UPST & WMT partnership as a strong positive. For reference, UPST and WMT-backed fintech OnePay entered into a one-year strategic partnership. We believe this partnership validates UPST’s lending capabilities and adds an incremental marketing channel for UPST’s personal loans. For reference, WMT sees ~270mn customers per week. We expect a positive stock reaction as UPST moat is being further validated." Mizuho maintains an Outperform rating and a $110 price target on Upstart’s stock.
The collaboration with OnePay is a significant step for Upstart as it seeks to expand its consumer lending products. By tapping into Walmart’s vast customer base, Upstart may be able to significantly increase its market presence and brand recognition.
Upstart’s strategy of partnering with a major retailer like Walmart could be a catalyst for future growth, even if it does not immediately impact financial results. The endorsement from a leading analyst indicates confidence in Upstart’s business model and its ability to capitalize on this new partnership. As the fintech industry continues to evolve, partnerships like this could become increasingly important for companies looking to scale quickly and effectively.
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