Pagaya Technologies Ltd (PGY – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst David Chiaverini from Wedbush maintained a Hold rating on the stock and has a $13.00 price target.
David Chiaverini has given his Hold rating due to a combination of factors, one of which is Pagaya Technologies Ltd.’s solid quarterly performance that surpassed expectations, coupled with a reaffirmation of its fiscal year guidance. Despite these positive signs, the company faces concerns regarding the capital-intensive nature of its business model. Chiaverini acknowledges that Pagaya’s plan to reduce risk retention from 7% to 2-3% of total network volume and diversify funding strategies is a step in the right direction. However, the necessity to potentially share losses as part of new funding arrangements could limit the benefits of these strategies.
Additionally, Chiaverini’s assessment includes a cautious view on the company’s mixed guidance for the upcoming quarter, despite a strong recent quarter with the highest fee-related profit margin over the past eight quarters. The firm’s addition of a significant payments provider and expectations to integrate more in the future are indicators of potential growth. Nevertheless, the potential for higher delinquency levels and adjustments in revenue and loss projections lead to a conservative stance. Wedbush’s neutral outlook reflects these uncertainties, suggesting that while Pagaya is making strides towards efficiency and risk reduction, the potential concessions needed to diversify funding might offset these positives to some extent.
According to TipRanks, Chiaverini is an analyst with an average return of -3.1% and a 44.74% success rate. Chiaverini covers the Financial sector, focusing on stocks such as NY Community, Western Alliance, and Upstart Holdings.
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Pagaya Technologies Ltd (PGY) Company Description:
Pagaya is a technology company offering financial products and services. Its sophisticated AI-driven credit and analysis technology enables real-time and comprehensive consumer credit and residential real estate solutions.
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