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 $1.50.
David Chiaverini has given his Hold rating due to a combination of factors surrounding Pagaya Technologies Ltd’s financial performance and future outlook. While the company’s recent performance aligns with their pre-announced results, the FY24 guidance presents a mixed picture, with EBITDA projections being positive yet accompanied by lower than anticipated network volume and total revenue forecasts. The company’s ability to secure ABS transactions remains impressive, but there is a concern about whether the ABS market can continue to support the necessary volume for Pagaya’s targets.
Furthermore, Chiaverini recognizes the potential for margin expansion as other lending verticals mature, similar to the higher margins seen in Pagaya’s personal loan segment. He notes the company’s strategic goals, including the addition of new large lending partners and monetization of existing relationships, which could drive future growth. However, despite these positive aspects, the cautious outlook on the capacity of the ABS market to absorb Pagaya’s expected issuance tempers the optimism, leading to the decision to maintain a neutral position on the stock.
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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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