PGY - Pagaya: Patience Should Pay Off

2024-05-23 18:09:47 ET

Summary

• Pagaya Technologies Ltd. recently reported another strong quarter with 31% revenue growth.
• The AI lending tech platform faces constant funding requirements from bank partners, and recent internal capital raises hurt the stock.
• The stock trades at less than 5x adjusted EBITDA targets despite strong growth, with related fintechs out of favor due to the interest rate environment.

Pagaya Technologies Ltd. ( PGY ) is an interesting fintech play, likely too complex for the general investing market. The stock has slumped to lows despite solid quarterly results , with the need for funding partners seen as a negative for the lending technology company. My investment thesis is Bullish on Pagaya, but the market might be unwilling to assign a premium valuation to the business....

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