Joseph Vafi, an analyst from Canaccord Genuity, maintained the Buy rating on Pagaya Technologies Ltd (PGY – Research Report). The associated price target is $25.00.
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Joseph Vafi has given his Buy rating due to a combination of factors related to Pagaya Technologies Ltd’s financial and operational improvements. He notes that the company’s balance sheet is becoming healthier and less risky, particularly as the risk retention charge from 2023 is behind them. The company is also expected to be self-funded and GAAP net income positive by 2025, indicating a strong financial outlook.
Additionally, the company is reducing its capital intensity by leveraging different financing vehicles, such as forward flow and passthrough agreements, which will help reduce risk retention obligations. This strategic move, along with the potential for significant operating leverage as network volumes increase, positions Pagaya well for future growth. With solid growth in network volume and enhanced pricing power, Pagaya is poised for a promising future, making it an attractive investment opportunity according to Vafi’s analysis.
Vafi covers the Technology sector, focusing on stocks such as Microstrategy, Concentrix, and ASGN. According to TipRanks, Vafi has an average return of 27.2% and a 49.75% success rate on recommended stocks.
In another report released today, JMP Securities also maintained a Buy rating on the stock with a $26.00 price target.