Benchmark Co. analyst Mark Palmer maintained a Buy rating on Pagaya Technologies Ltd (PGY – Research Report) yesterday and set a price target of $21.00.
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Mark Palmer has given his Buy rating due to a combination of factors that highlight Pagaya Technologies Ltd’s strategic advancements and financial positioning. One of the key reasons for this positive outlook is Pagaya’s recent forward flow agreement with Blue Owl Capital, which is set to purchase up to $2.4 billion in consumer loans over two years. This agreement not only reduces the company’s reliance on its traditional asset-backed securities (ABS) program but also strengthens its funding capabilities.
Moreover, Pagaya’s consistent success in the ABS market, exemplified by its $600 million personal loan ABS deal, further reinforces its robust financial strategy. The company has managed to attract a broad base of investors, including repeat participants, indicating strong confidence in its offerings. These strategic moves position Pagaya well for sustained growth, with diversified funding sources enhancing its capital efficiency and resilience. Overall, these developments underpin Palmer’s optimistic Buy rating for the stock.
In another report released today, Citi also upgraded the stock to a Buy with a $14.50 price target.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PGY in relation to earlier this year.