Keefe, Bruyette & Woods raises Pagaya Tech stock price target to $38 on growth

Published 08/08/2025, 15:36
© Ido Isaac, Pagaya PR

Investing.com - Keefe, Bruyette & Woods raised its price target on Pagaya Tech (NASDAQ:PGY) to $38.00 from $27.00 on Friday, while maintaining an Outperform rating on the financial technology company.

The price target adjustment follows what the research firm described as a "record setting quarter" for Pagaya, which reported 14% year-over-year volume growth, exceeding Street expectations by 4%. The company’s impressive performance is reflected in its 23.7% revenue growth and 42.4% gross profit margin. InvestingPro data shows the stock has delivered a remarkable 145% return over the past six months.

Pagaya slightly raised its 2025 guidance, contributing to KBW’s bullish outlook on the company’s near-term growth opportunities amid stabilizing consumer credit conditions and increasing buy-now-pay-later interest from banks seeking to access underbanked consumers.

The research firm noted Pagaya’s optimized balance sheet following refinancing and continued success in the asset-backed securities market provides "more than enough funding capacity" to capitalize on favorable market conditions.

KBW believes Pagaya "remains undervalued when compared to peers," supporting its decision to maintain an Outperform rating on the stock.

In other recent news, Pagaya Technologies reported impressive financial results for the second quarter of 2025. The company significantly exceeded earnings expectations, posting an earnings per share (EPS) of $0.64, well above the forecasted $0.13. Revenue also surpassed projections, reaching $326 million compared to the anticipated $311.96 million. These results reflect a strong performance and have been well-received by investors. The announcement comes amid a positive atmosphere for Pagaya, as the company’s financial health continues to show resilience and growth. Analyst firms have taken note of Pagaya’s robust earnings, indicating a positive outlook for the company’s future performance. This development highlights Pagaya’s ability to outperform market expectations and maintain investor confidence.

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