Bullish indicating open at $55-$60, IPO prices at $37
NEW YORK - Pagaya Technologies LTD. (NASDAQ: PGY), a global technology company specializing in AI-driven financial solutions with a market capitalization of $1.06 billion and impressive revenue growth of 24% over the last twelve months, announced the initiation of a new asset-backed securitization program named POSH (Pagaya Point of Sale Holdings Trust), aimed at enhancing point-of-sale (POS) financing. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations, with 7 analysts recently revising their earnings estimates upward. The program seeks to bolster merchant satisfaction and activation by providing increased funding capacity to point-of-sale lenders in the U.S.
POSH 2025-1, the program’s inaugural transaction rated AAA by KBRA, is set to close next week with a $300 million deal and an 18-month revolving period. This structure allows Pagaya to reinvest capital as loans are repaid, which is anticipated to significantly expand lending capacity and improve capital efficiency.
The POS product, designed for short-term loans averaging six months and catering to credit profiles starting at 600, is intended to enable lenders to approve more customers without incurring additional credit risk. As the demand for POS solutions grows, Pagaya aims to meet this demand by providing new capital solutions to support the expansion of lending partners.
Sanjiv Das, Co-Founder and President of Pagaya, stated that the launch of POSH marks a significant growth phase for the company in the POS sector, enhancing their ability to support lending partners and consequently increasing merchant satisfaction. Gal Krubiner, Co-Founder and CEO of Pagaya, expressed pride in launching POSH and leveraging the company’s securitization expertise to serve the burgeoning POS market.
Pagaya has seen over 20 unique investors participate in POSH 2025-1, including new and repeat investors from other ABS programs. This reflects the company’s ongoing momentum in the ABS markets, with over $2.8 billion in rated ABS deals executed year-to-date and nearly $29 billion across 71 ABS transactions since inception.
The company, with offices in New York and Tel Aviv, is known for integrating its AI-driven approach and machine learning technology into financial services, providing consumer credit and residential real estate products through its proprietary API and capital solutions. The company’s strong financial position is reflected in its healthy current ratio of 1.79 and substantial EBITDA of $141 million. Discover more detailed insights and analysis in the comprehensive Pro Research Report, available exclusively on InvestingPro, along with additional ProTips and advanced metrics that help investors make informed decisions.
This announcement is based on a press release statement from Pagaya Technologies LTD. The company’s stock has shown remarkable momentum with a 47% return over the past six months, reflecting strong market confidence in its business model. For access to real-time analysis, Fair Value calculations, and exclusive financial insights on PGY and 1,400+ other stocks, visit InvestingPro.
In other recent news, Pagaya Technologies reported strong first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of 69 cents compared to the anticipated loss of 17 cents. The company’s revenue reached $290 million, exceeding the forecast of $286.3 million and marking an 18% increase year-over-year. This performance was highlighted by Pagaya’s first-ever GAAP net income of $8 million and a significant surge in auto loan volumes by nearly 50% sequentially. Additionally, Pagaya raised $1.4 billion in asset-backed securities, demonstrating its robust funding capabilities.
Citizens JMP reiterated a Market Outperform rating for Pagaya, maintaining a $20 price target, which is based on projected earnings per share for 2026. This confidence is partly due to Pagaya’s strategic partnerships, including its role in Klarna’s asset-backed securities facility, which aims to enhance point-of-sale lending services in collaboration with Walmart. The company’s strategic focus on scaling its point-of-sale platform has been noted as a key factor in its growth trajectory.
Looking ahead, Pagaya has set ambitious targets for 2025, including network volume guidance between $9.5 billion and $11 billion, and total revenue projections ranging from $1.175 billion to $1.3 billion. Analyst firms like Citizens JMP have shown optimism about Pagaya’s growth potential, reflected in their maintained ratings and price targets.
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