Pagaya price target lowered to $33 from $48 at Benchmark

Benchmark lowered the firm’s price target on Pagaya (PGY) to $33 from $48 and keeps a Buy rating on the shares. The firm notes shares of the AI-driven credit-decisioning platform fell more than 20% after reporting a modest topline miss and issued softer-than-expected guidance for Q1 2026 network volume, revenue, and adjusted EBITDA. The selloff in Pagaya’s shares was “violent and largely disconnected” from what management said during this morning’s earnings call, because what they described was not credit stress or operational slippage experienced directly by the company, Benchmark argues. It was prudence – a deliberate, preemptive, action aimed at reducing Pagaya’s exposure to tail risk.