Pagaya initiated with an Outperform at JMP Securities

JMP Securities initiated coverage of Pagaya Technologies with an Outperform rating and $2.75 price target, representing 40% upside from current levels. The company provides underwriting and credit decisioning services to lenders that primarily serve non-prime consumers across several asset classes, the analyst tells investors in a research note. The firm says Pagaya’s funding model, which relies on pre-funded securitizations and investment funds, has addressed “the Achilles’ heel of many marketplace lenders, namely funding disruptions.” JMP sees several secular and business pipeline drivers for the company.