Pagaya's AI Lending Platform Sees Strong Growth; Profitability Expected by 2025 as Major Banks Sign On
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Pagaya operates an AI-powered credit evaluation platform that identifies lending opportunities for banks and creditors. It also bundles and sells loans as asset-backed securities.
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In Q4 2022, Pagaya grew network volume by 33% and revenue by 13% year-over-year. It expects over 20% network volume growth and 23% revenue growth in 2023.
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Pagaya is marketing to major banks and creditors like Visa, Ally Bank, SoFi, and U.S. Bank. It aims to onboard 2-4 large new clients per year.
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Pagaya is not yet profitable by GAAP standards but is moving closer to profitability. It expects to become cash flow positive in early 2025.
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Wall Street analysts see 100%+ upside for Pagaya stock over the next 12-18 months. The average price target is $3 per share.