Pagaya price target lowered to $11.50 from $18 at Wedbush

Wedbush analyst David Chiaverini lowered the firm’s price target on Pagaya to $11.50 from $18 and keeps a Neutral rating on the shares. Pagaya announced Thursday morning the pricing of a 7.5 million share offering at $12.70/share, a meaningful discount to the prior day’s closing price, the analyst tells investors in a research note. The firm fears the capital raise came out of of necessity, and comes at a time in which Pagaya has been taking on increasing amounts of residual horizontal risk in its ABS deals, increasing its on-balance sheet credit risk.