Analyst Mark Palmer from Benchmark Co. reiterated a Buy rating on Pagaya Technologies Ltd (PGY – Research Report) and keeping the price target at $25.00.
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Mark Palmer has given his Buy rating due to a combination of factors including Pagaya Technologies Ltd’s recent operational progress and its stock’s attractive valuation compared to its peers. Despite a significant rally in its share price, the stock remains undervalued, trading at a lower EV/EBITDA multiple than the average of its peer group. Additionally, Pagaya has achieved GAAP net income profitability, setting it apart from competitors like Upstart, which is still working towards this milestone.
Furthermore, Pagaya’s disciplined approach to growth, focusing on building a resilient business model rather than maximizing short-term volume, adds to its appeal. The company is committed to maintaining a stable conversion rate and providing value across its marketplace platform, which is expected to yield consistent revenue and profitability. These strategic moves, alongside efforts to rebuild investor confidence, underpin Palmer’s positive outlook and the reiteration of a Buy rating with a price target of $25.