In a report released today, Mark Palmer from Benchmark Co. reiterated a Buy rating on Pagaya Technologies Ltd (PGY – Research Report), with a price target of $25.00.
Mark Palmer has given his Buy rating due to a combination of factors that highlight Pagaya Technologies Ltd’s promising financial performance and strategic achievements. The company reported a solid first quarter of 2025, marking its first-ever positive GAAP net income as a public entity, which was achieved a quarter earlier than anticipated. This milestone, coupled with a significant year-over-year revenue increase and reduced operating expenses, underscores Pagaya’s ability to enhance its profitability and operational consistency.
Furthermore, Pagaya’s adjusted EBITDA more than doubled year-over-year, demonstrating strong operating leverage as the company scales. Despite a slight shortfall in network volume, this was attributed to a strategic focus on more profitable growth areas, such as personal loan and auto lending fees, which saw substantial increases. Additionally, successful execution of significant asset-backed securities transactions amidst market volatility validated investor confidence in Pagaya’s assets. These factors, combined with a favorable valuation based on an EV/EBITDA multiple, support the Buy rating and suggest potential for significant share price appreciation.
In another report released today, KBW also maintained a Buy rating on the stock with a $23.00 price target.