Pagaya's AI Lending Platform Sees Strong Growth, Expands Partnerships in 2022 While Analysts Bullish on Continued Upside
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Pagaya operates an AI-powered credit evaluation platform that partners with banks and creditors to identify lending opportunities and bundle loans into asset-backed securities.
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Pagaya reported strong growth in 2022 - network volume up 14%, revenue up 8%, adjusted EBITDA up $87 million.
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It is expanding partnerships rapidly, recently signing deals with U.S. Bank, Visa, and Westlake Financial. It has 15 more major enterprise clients in its pipeline.
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Wall Street analysts see significant upside potential in Pagaya stock, with forecasts of 100% gains over the next 12-18 months. The average price target is $3.
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Risks include Pagaya's short operating history, lack of GAAP profitability currently, and volatility in the credit industry it operates in.