Pagaya's AI Lending Platform Shows Resilience and Long-Term Potential Despite Economic Headwinds
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Pagaya is an AI lending platform with huge long-term potential. The business has shown resilience amid economic headwinds.
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Q3 results beat estimates across the board. Pagaya raised full-year guidance. The company continues to expand partnerships on both sides of its network.
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Management laid out a clear path to $25B in network volume. However, balance sheet capacity could limit growth. Additional capital raise likely needed.
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Based on conservative assumptions, Pagaya's fair value is $7.87 per share. Stock offers 52% CAGR return potential over next 5 years.
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Main risks include unproven AI models and recession impacting volumes. However, reward far outweighs risk at current levels.
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Pagaya is a "Strong Buy" at $1.45 per share for long-term investors.