Pagaya price target raised to $26 from $20 at Citizens JMP

Citizens JMP analyst David Scharf raised the firm’s price target on Pagaya (PGY) to $26 from $20 and keeps an Outperform rating on the shares. Pagaya’s “exceptional” unit economics and operating leverage is translating into very strong EBITDA margins, and its B2B2C model that integrates directly into other lenders’ platforms for underwriting turn-downs allows it to grow by step functions by adding new lenders, enjoys barriers to entry with these partners, the analyst tells investors in a research note. By already achieving a measure of scale in auto and point-of-sale, Pagaya has demonstrated its ability to diversify beyond personal loans, the firm argues.