Pagaya initiated with an Overweight at Stephens

Stephens analyst Kyle Joseph initiated coverage of Pagaya (PGY) with an Overweight rating and $22 price target The firm recommends specialty finance stocks with “funding advantages and superior customer-acquisition models,” saying these companies are the most insulated from economic downturns and heightened competition. Pagaya enables lenders to sustain relationships with customers they would normally turn down, while simultaneously offloading the credit risk to third-partie, the analyst tells investors in a research note. Stephens like Pagaya’s “unique model, vast addressable markets, value proposition to the lender and growth prospects.”