Pagaya price target lowered to $25 from $30 at JMP Securities

JMP Securities lowered the firm’s price target on Pagaya to $25 from $30 and keeps an Outperform rating on the shares. Pagaya shares have been under pressure since the company’s effective date of its reverse stock split on March 8 initially, but more intensely since its March 14 issuance of Class A shares in an overnight transaction that diluted existing shareholders by roughly 10%, the analyst says. The firm believes Pagaya already has enough secured financing in place to fund its required risk retention in 2024 as the ABS sponsor of its prefunded securitizations.