Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - JMP Securities raised its price target on Pagaya Technologies (NASDAQ:PGY) to $35 from $26 on Monday, while maintaining a Market Outperform rating following the company’s second-quarter results. According to InvestingPro data, analyst targets for PGY now range from $26 to $48, with the stock showing potential upside based on its Fair Value analysis.
Pagaya reported its second-quarter 2025 results last Thursday, which aligned with the company’s July 17 preannouncement. Management raised full-year 2025 guidance across all metrics. The company has demonstrated strong momentum, with revenue growing 24.59% over the last twelve months to $1.15 billion, while maintaining a healthy gross profit margin of 42.26%.
The fintech company is experiencing significant growth beyond its core personal loan business, with auto and point-of-sale volume now representing approximately 30% of network volume for the quarter.
JMP cited Pagaya reaching an "inflection point" where almost all incremental gross profit should convert to pretax profit going forward, demonstrating emerging operating leverage.
The price target increase reflects JMP’s decision to raise its target GAAP EPS multiple to 15x from 12.5x, applied to updated 2027 estimates and discounted back one year.
In other recent news, Pagaya Technologies reported a robust second quarter for 2025, significantly surpassing earnings expectations. The company achieved an earnings per share (EPS) of $0.64, well above the projected $0.13. Revenue also exceeded forecasts, reaching $326 million compared to the anticipated $311.96 million. Additionally, Keefe, Bruyette & Woods raised its price target for Pagaya Tech to $38 from $27, maintaining an Outperform rating. This adjustment followed what the firm described as a "record-setting quarter" for Pagaya, with a 14% year-over-year volume growth that exceeded Street expectations by 4%. These developments reflect recent positive momentum for the company.
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