Pagaya the ‘unambiguous winner’ from Klarna/Walmart deal, says Citizens JMP

Last week it was announced that Klarna (KLAR) will displace Affirm (AFRM) as the provider of POS installment loans through Walmart’s (WMT) OnePay digital wallet offering, Citizens JMP analyst David Scharf tells investors in a research note. The firm says Pagaya (PGY) has emerged from this development as an “unambiguous winner,” because as the white-labeled underwriter of Klarna’s three-month and longer installment loans for Klarna, the Walmart business represents a significant tailwind, and the company also stands to benefit from Klarna’s further push into longer-duration loan products within the U.S. Citizens reiterated its Outperform rating and $26 price target on Pagaya shares.