Benchmark maintains Buy rating on Pagaya Tech stock

On Tuesday, Benchmark analysts reaffirmed their Buy rating on Pagaya Tech (NASDAQ: NASDAQ:PGY), maintaining a price target of $25.00. This decision follows discussions with company executives at the recent Benchmark Fintech Virtual Seminar. According to InvestingPro data, analyst targets range from $13.75 to $36, with 7 analysts recently revising earnings expectations upward.

During the seminar, Pagaya’s CEO Gal Krubiner and CFO Evangelos Perros addressed the company’s growth prospects. They presented numerous metrics to support their claims of sustained, profitable growth. The company has demonstrated strong performance with 23.7% revenue growth over the last twelve months, and maintains a GOOD overall financial health score.

Since April 21, Pagaya’s stock has seen a significant increase, with its share price rising by over 93%. This surge is attributed to the operational progress highlighted in the company’s first-quarter report.

Benchmark analysts appear confident in Pagaya’s potential, as reflected in their reiterated Buy rating and steady price target.

In other recent news, Pagaya Technologies reported impressive first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of 69 cents, significantly better than the anticipated loss of 17 cents. The company’s revenue also exceeded forecasts, reaching $290 million against the predicted $286.3 million, marking an 18% year-over-year increase. Pagaya achieved its first-ever GAAP net income of $8 million, reflecting robust financial health and strategic growth in its lending capabilities. Additionally, Pagaya has launched a $1 billion asset-backed securitization program named POSH, aimed at enhancing point-of-sale financing and increasing lending capacity. This initiative, set to close with a $300 million deal, underscores Pagaya’s commitment to expanding its reach in the financial sector.

Analyst firm Citizens JMP reaffirmed a Market Outperform rating for Pagaya, maintaining a $20 price target, reflecting confidence in the company’s growth trajectory and strategic partnerships. The firm’s valuation is based on Pagaya’s projected GAAP earnings per share for 2026, indicating optimism in the company’s future performance. Furthermore, Pagaya’s collaboration with Klarna, in partnership with Walmart (NYSE:WMT), is set to expand installment lending services, highlighting Pagaya’s strategic focus on scaling its POS platform. These developments illustrate Pagaya’s ongoing momentum in the ABS markets, with over $2.8 billion in rated ABS deals executed year-to-date.

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