Joseph Vafi, an analyst from Canaccord Genuity, maintained the Buy rating on Pagaya Technologies Ltd (PGY – Research Report). The associated price target is $42.00.
Joseph Vafi’s rating is based on a comprehensive assessment of Pagaya Technologies Ltd’s recent performance and strategic developments. Pagaya has demonstrated significant growth across key performance indicators (KPIs) and reported record profit and loss (P&L) results, which indicate an accelerating growth trajectory. The company has expanded its consumer lending network, securing a major partnership with Elavon, a top-five global payments provider. This partnership, alongside connections with six very large lenders, reflects Pagaya’s strengthening position in the market. Additionally, Pagaya’s investment network has attracted a record $1.9 billion in quarterly funding, showcasing the company’s ability to pull in substantial institutional investment.
Vafi also recognizes Pagaya’s effective leverage of a modest increase in loan application volume into substantial network volume growth while maintaining conservative underwriting standards, which speaks to the company’s operational efficiency and potential for margin improvement. Furthermore, Pagaya has improved its fee revenue and fee revenue less production costs (FRLPC), with margins exceeding medium-term guidance. These financial improvements are complemented by strategic steps to enhance the company’s balance sheet, such as raising significant equity and debt financing and reducing risk retention on asset-backed securities funding. Looking ahead, Pagaya’s regulatory-approved lending algorithm and expansion into the auto loan vertical present additional avenues for growth, suggesting a promising outlook for the company and supporting Vafi’s Buy rating.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $22.00 price target.
PGY’s price has also changed dramatically for the past six months – from $1.270 to $12.600, which is a 892.13% increase.
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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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