Pagaya jumps after Citi Research upgrades to 'buy'

Pagaya Technologies

07/02/2025 18:32

** Shares of financial technology company Pagaya
Technologies  PGY.O  jump as much as 16.4%; last up 12.7% at
$12.48
    ** Citi Research upgrades PGY to "buy" from "neutral";
raises PT to $14.50 from $13, a 31% upside to stock's last close
    ** Brokerage says the stock has been held back owing to
recent markdowns on PGY's 2023 loans and expects a final ~$60
million impairment in Q4 
    ** Citi thinks the narrative around PGY improves in 2025
towards a focus on network partner expansion and rising personal
loan demand
    ** Meanwhile, PGY on Thursday unveiled a tieup with
alternative asset manager Blue Owl  OWL.N , which will buy as
much as $2.4 billion of consumer loans through firm's network
over a 24-month period
    ** Eight of nine brokerages rate the stock "buy" or higher
and one "hold"; their median PT is $21 — LSEG
    ** PGY stock slumped 43.9% in 2024

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com))