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Stock impact report

Pagaya Technologies: An Asymmetric Play With Big Upside Potential [Seeking Alpha]

Pagaya Technologies Ltd. - Class A Ordinary Shares (PGY) 
Company Research Source: Seeking Alpha
expanding margins (e.g., EBITDA margin improved from 7% to 20% in four quarters). PGY's edge rests on six competitive advantages, including an AI-driven 'Second Look' model, upfront funding, and B2B2C partnerships that focus on working with banks instead of competing against them. I see a 91% upside in my base case—a blend of relative and absolute valuation—driven mainly by expanding margins and a potential drop in the discount rate. "Key risks include the potential for a black swan event to compromise the AI model's accuracy, high leverage (1.83x debt-to-equity), interest rate sensitivity, and reliance on market liquidity. WANAN YOSSINGKUM/iStock via Getty Images Thesis I rate Pagaya Technologies Ltd (NASDAQ: PGY ) as a Strong Buy, because of its massive potential upside. While my base case sits at 91% return for the next 12 months, I believe it could rally anywhere from 50% to This article was written by Analyst's Disclosure: I/we have a beneficial long position in t Show less Read more
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