Pagaya initiated with an Outperform at Keefe Bruyette

Keefe Bruyette analyst Sanjay Sakrani initiated coverage of Pagaya with an Outperform rating and $23 price target. Pagaya operates a digital marketplace that connects lenders and funding partners and is currently working with 30 lending partners, notes the analyst, who points out the that the company provides AI-driven underwriting technology for secondary review of applicants that were not directly approved by these platforms in order to enhance the chances of approval. The platform is scaled, with more than $9B on an annualized run-rate basis as of Q1, and has a “strong runway for growth,” the analyst tells investors.