Pagaya Technologies Soars as Jefferies Initiates Coverage with “Buy” Rating
Introduction:
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.
Key Highlights:
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.
Strategic Partnerships:
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.
Conclusion:
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.