In a report released today, David Chiaverini from Wedbush maintained a Hold rating on Pagaya Technologies Ltd (PGY – Research Report), with a price target of $2.00.
David Chiaverini has given his Hold rating due to a combination of factors. To begin with, Pagaya Technologies Ltd demonstrated a strong quarter, surpassing forecasted network volume and reporting lower than expected production costs. This led to an increase in fee revenue, with fees on the lending side constituting 60% of the FRLPC margin. Despite lower fees on the investor side due to rising funding costs, the company’s funding capabilities continue to impress, with the firm once again emerging as the top personal loan issuer in the U.S.
On the other hand, the recent announcement of several new partnerships is anticipated to significantly expand network volume over time and help Pagaya achieve its long-term network volume target. The company has also raised its guidance for FY2023, reflecting its strong application flow and strategic targeting of an FRLPC margin of 3% to 4%. Nonetheless, the conversion rate is expected to remain low in the near term, and financial market pressures could keep investor fees low. Despite these promising aspects, Chiaverini believes that the company’s prospects are adequately represented in its current valuation, hence the hold rating.
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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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