** Consumer lender Upstart Holdings' UPST.O shares rise 2.8% to $27.09 premarket

** BTIG upgrades UPST to "buy" from "neutral"; sets $43 PT, implying a 63% upside to stock's last close

** Brokerage says UPST's current share value doesn't price in any potential upside from becoming a bank

** UPST last week unveiled a plan to apply for a bank charter, a move that could allow it to cut costs and streamline its partnerships with banks, credit unions and institutional credit funds

** BTIG says a bank charter addresses what it considers to be a key downside risk of UPST's private credit exposure by having deposits fully available during liquidity crises

** 8 of 16 brokerages rate the stock "buy" or higher, 7 "hold" and 1 "sell"; median PT $47 - data compiled by LSEG

** As of last close, UPST stock down 39.7% YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))