Benchmark Co. analyst Mark Palmer reiterated a Buy rating on Pagaya Technologies Ltd (PGY – Research Report) today and set a price target of $25.00.
Mark Palmer has given his Buy rating due to a combination of factors that highlight Pagaya Technologies Ltd’s potential for growth and profitability. The company is expected to avoid the significant impairment-related losses that impacted its share price in the past, particularly as it shifts focus to growth drivers and profitability. Pagaya’s introduction of a new pre-screen lending product and its ability to self-fund growth, achieved by the end of 2024, are seen as positive developments.
Additionally, the recent closure of a $500 million, AAA-rated personal loan ABS deal provides reassurance amidst investor concerns about the macroeconomic environment. Despite a recent decline in share price, Pagaya’s management has expressed confidence in their guidance for 2025, suggesting that past impairment charges will not materially affect future performance. The company’s valuation gap compared to peers is considered unwarranted, given its growth prospects and platform stabilization, justifying the Buy rating and a price target of $25.
In another report released on March 3, Citi also maintained a Buy rating on the stock with a $16.50 price target.
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