Pagaya Technologies Soars as Jefferies Initiates Coverage with “Buy” Rating
Shares of Pagaya Technologies (NASDAQ:PGY) surged in U.S. premarket trading following a “buy” rating initiation by Jefferies analysts. The Israel-based fintech firm utilises artificial intelligence to deliver real-time customer credit assessments for clients such as banks, insurers, pension funds, and asset managers.
Jefferies analysts, in a client note, identified Pagaya’s AI-driven product as creating a “powerful network effect,” positioning the company for sustained success. The broker assigned Pagaya a price target of $1.39, citing significant growth potential through increased client penetration, continual additions of lending platforms, ongoing market share aggregation, and improved conversion rates.
Pagaya’s recent partnership with Exeter Finance, an auto finance business with a portfolio exceeding $9.4 billion, marked a significant milestone. Exeter Finance joined Pagaya’s extensive network, which includes prominent financial institutions like SoFi, Klarna, and Upgrade.
Market Valuation and Background:
Having gone public through a merger with special-acquisition vehicle EJF Acquisition Corp in 2022, Pagaya boasted a valuation of $8.5 billion. The company’s innovative approach to AI-driven credit assessments positions it as a major player in the fintech space.
As Jefferies initiates coverage with a bullish outlook and a target price of $1.39, Pagaya Technologies continues to demonstrate its growth potential and strategic prowess in the evolving landscape of AI-driven financial solutions. The recent partnership with Exeter Finance underscores Pagaya’s commitment to expanding its network and solidifying its position in the fintech market.