Hedge fund manager Eric Jackson told CNBC on Tuesday he's still bullish on Upstart Holdings , even though shares of the artificial intelligence-based lending platform have already soared 545% in 2021. Jackson, who is president and portfolio manager of Toronto-based EMJ Capital , had touted the company's potential in a CNBC interview in January, less than a month after Upstart debuted on the Nasdaq. On Tuesday, Jackson said he sees "a lot of room to the upside" for Upstart shares, which closed Tuesday's session up 6.2% at $262.70 apiece. Upstart priced its IPO at $20 per share late last year. "Hard to believe that I'm going to argue that a stock that's 13x'd is still undervalued, but I think that's the case," said Jackson, who launched his investment firm in 2017. Upstart, which was co-founded in 2012 by former Google executive Dave Girouard, uses AI with the goal of improving the loan process. Girouard, who serves as CEO, recently told CNBC he believes the company offers a more "360 degree" assessment of credit worthiness than a traditional FICO score. Upstart sells its technology to lending institutions such as banks and credit unions. It initially focused on personal loans, but Jackson noted Upstart is expanding into the significantly larger category of automotive loans . Jackson thinks Wall Street is underestimating Upstart's potential to keep growing at an impressive pace — in the second quarter, quarterly revenues of $194 million represented a 1,018% jump compared with the same period last year . In the first quarter of 2021, Upstart's total revenue was $121 million, a 90% increase from the same timeframe in 2020. "Wall Street is only predicting that they're going to grow 33% into 2022. I don't think a company growing 1,000% is going to suddenly slow down to 33%. I think it's much more likely that they again double their revenues next year," Jackson said. Jackson said Upstart is the fast-growing publicly traded financial tech firm he's aware of. "The nearest one is Afterpay, which just got bought by Square and that trades at 24 times next year's revenues. So, for a name like Upstart, I think it should trade at, at least, 30 times next year's revenues. If they did, this should be a $600 stock, not a $260 stock or whatever it is today." Jackson is not the only hedge fund manager who believes in Upstart. Third Point's Dan Loeb owns 12.4 million shares in Upstart, even after trimming his position late last month, according to filings with the Securities and Exchange Commission . That's worth about $3.26 billion as of Tuesday's closing price. As of Aug. 6, Upstart was one of Loeb's best-performing stocks this year, CNBC previously reported . CNBC's Jim Cramer last month also called Upstart was one of the "best of the best" recent IPOs and encouraged "Mad Money" viewers to start a small position in the company. Watch the full interview with EMJ Capital's Eric Jackson above.
In this photo illustration an Upstart Holdings logo is seen on a smartphone screen.
Pavlo Gonchar | SOPA Images | LightRocket | Getty Images
Hedge fund manager Eric Jackson told CNBC on Tuesday he's still bullish on Upstart Holdings, even though shares of the artificial intelligence-based lending platform have already soared 545% in 2021.