Pagaya Technologies: Benchmark Keeps Buy Rating, Raises PT to $48 from $42

Pagaya Technologies: Benchmark Keeps Buy Rating, Raises PT to $48 from $42

Benchmark Securities has maintained its "buy" rating for Pagaya Technologies (NASDAQ: PGY) but has increased its price target from $42 to $48. The upgrade reflects the company's strong second-quarter earnings and the analyst's confidence in its growth prospects [3].

Pagaya Technologies reported adjusted earnings of 64 cents per share for the quarter ended June 30, 2025, surpassing analysts' expectations of 21 cents per share. Revenue rose by 30.4% to $326.4 million, while net income reached $15.64 million [2]. The company's shares have gained 237.6% year-to-date, driven by robust financial performance and strategic partnerships.

The analyst noted that Pagaya's AI-powered lending platform, which uses advanced data analytics to assess consumer credit, has the potential to disrupt the consumer finance market. The company's recent deals, such as its $300 million POSH (point-of-sale holdings) agreement with Klarna, demonstrate its ability to capitalize on emerging trends like buy now, pay later (BNPL) [1].

Benchmark's updated price target reflects its belief in Pagaya's ability to continue delivering strong growth and profitability. The company's addressable market in consumer finance is estimated to be over $800 billion, providing ample opportunity for expansion [1].

Despite the positive outlook, investors should remain cautious about Pagaya's risk profile. The company is still young and relies on complex ABS loans targeting lower-quality borrowers, which could pose risks [1].

References:
[1] https://www.aol.com/dirt-cheap-stock-262-could-101000820.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3TZ2QS:0-pagaya-technologies-ltd-reports-results-for-the-quarter-ended-june-30-earnings-summary/
[3] https://seekingalpha.com/news/4480202-pagaya-technologies-and-nbsp-q2-2025-earnings-preview