In a report released today, David Scharf from JMP Securities reiterated a Buy rating on Pagaya Technologies Ltd (PGY – Research Report), with a price target of $2.25.
David Scharf has given his Buy rating to Pagaya Technologies Ltd due to a combination of factors. The first being Pagaya’s recent successful negotiations with large financial institutions, including a top 20 bank, a top five U.S. bank and a top four OEM captive auto lender, to join its network. These partnerships not only significantly increase the scale of Pagaya’s network, but also underscore its ability to overcome the substantial compliance, regulatory, and security challenges that often deter marketplace lenders. This achievement indicates a promising head start for the company in its network growth.
Scharf also commends Pagaya’s unique points of differentiation in the marketplace lending landscape. The company’s funding model, which is reliant on pre-funded securitizations and investment funds, addresses the common issue of funding disruptions faced by many marketplace lenders. In addition, Pagaya’s B2B2C model allows direct integration into other lenders’ platforms, enabling growth and creating a more robust network effect. Finally, Pagaya’s ability to diversify beyond personal loans into auto and point-of-sale, shows its adaptability and potential for further growth. Consequently, Scharf reiterates his Market Outperform rating on Pagaya Technologies and maintains a $2.25 price target.
In another report released today, Benchmark Co. also reiterated a Buy rating on the stock with a $6.00 price target.
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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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