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0 0.000381533765738327 -0.00190766882869137 0.000381533765738327 -0.00572300648607396 -0.00572300648607396 0 -0.00419687142312092
Stock impact report

Pagaya: Capitalizing On Private Credit's Great Rotation While Operating Leverage Shines [Seeking Alpha]

Pagaya Technologies Ltd. - Class A Ordinary Shares (PGY) 
Company Research Source: Seeking Alpha
Pagaya's operating leverage scale could ensure that incremental FRLPC dollar gains flow directly to its bottom line, potentially offsetting anticipated margin compression in FY 2026. PGY appears to be benefiting from private credit's ongoing push into asset-backed financing, with strong demand for its ABS transactions YTD representing 41% of its total ABS funding in 2025. Pagaya's strong resecuritization momentum YTD and tighter models could see it report credit-related impairments lower than last year, potentially driving additional earnings upside. I'm reiterating my strong buy rating for Pagaya with a $23 base case price target, implying 68% upside potential from its current valuation. Getty Images Since reporting Q4 earnings, shares of Pagaya Technologies Ltd. ( PGY ) is down 27% after missing top-line estimates for the first time in 7 quarters and posting conservative guidance for FY 2026. Pagaya's earnings results and conservative guidance were driven Show less Read more
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