Hello, Thanks for signing up for MarketBeat Daily Ratings—we’re excited to have you on board. Every weekday, you’ll get a curated summary of new “Buy” and “Sell” ratings from Wall Street’s top-rated analysts, the latest stock news, and bonus investing content—all delivered straight to your inbox. You’re just two quick steps away from completing your sign-up: 1. Make sure our emails go to your inboxGmail users:
Mobile: Tap the three dots (…) in the top right and select Move to Inbox or Move to Primary
Desktop: Click the folder icon at the top and select Move to Inbox or Primary Apple Mail users:
Tap our email address at the top (next to From: on mobile), then select Add to VIP Other providers:
Reply to this message and add newsletters@analystratings.net to your contacts 2. Confirm your subscriptionClick this link to confirm your subscription. This verifies your account and ensures you receive your newsletters without interruption instead of getting stuck in your spam filter. Confirm your subscription here. After you confirm, feel free to download our popular free report, "7 Stocks to Buy and Hold Forever" with this link. Thanks again for subscribing—we look forward to being part of your investing journey. 
Matthew Paulson
Founder and CEO, MarketBeat. P.S. If you didn’t mean to subscribe, no problem—you can unsubscribe here.
This Month's Bonus Content
This AI Lender Has Big Upside Potential—And Big RisksBy Peter Frank. Article Published: 4/19/2026. 
Key Points
- Pagaya connects lenders and investors using AI to expand credit access without holding loans on its balance sheet.
- The company reached profitability in 2025, marking a major shift after years of losses.
- Analysts see around 133% upside, but the stock remains highly volatile and sensitive to credit markets.
- Special Report: Elon’s “Hidden” Company
Combine fintech, artificial intelligence (AI), consumer lending, and asset-backed securities (ABS), and you get a company that can be volatile. Pagaya Technologies (NASDAQ: PGY) has delivered exactly that experience for investors. Last year, the company—which has dual headquarters in New York and Tel Aviv—reported its first annual profit since going public in June 2022. Revenue rose 26%, prompting some analysts to point to more than 100% upside from current prices. Still, the stock has fallen roughly two-thirds since September and about 30% so far this year.
A $2 gold stock is said to quietly control what may be the largest gold deposit in the world - worth nearly $1 trillion.
According to Jim Rickards, an announcement is expected around July 1 that could bring this historic discovery into public view. See the full details on this $2 gold stock before July 1
That plunge in share price doesn’t necessarily signal a broken business. It’s not uncommon for a high-risk, high-reward fintech to see sharply volatile trading in an uncertain market. For investors willing to take the ride, the gap between today’s share price and analysts’ year-ahead targets is hard to ignore. How Pagaya’s AI-Driven Model WorksPagaya is not a traditional bank or lender. It operates an AI-powered network that sits between lenders and the institutional investors who buy consumer loan packages in the form of ABS. When a borrower applies for a personal loan, auto financing, or a point-of-sale loan through one of Pagaya’s partners and isn't approved by the lender, Pagaya’s AI evaluates the application. If accepted, the loan is routed into a securitization that Pagaya structures and sells to investors. Pagaya does not hold the credit risk long-term; it earns fees on each loan it moves through the platform. Since its founding, the platform has evaluated over $3.5 trillion in loan applications and sold more than $34 billion in personal loan ABS. Financial Performance Shows a Turning PointFounded in 2016, Pagaya pursued growth for years while struggling with profitability. That shifted last year: the company swung from a $401 million loss in 2024 to an $81 million profit in 2025. Adjusted EBITDA rose 76% to $371 million. Revenue climbed 26% to $1.3 billion, and network volume—the total of loans flowing through the platform—grew 9% to $10.5 billion. Both results benefited from Pagaya’s decision to expand originations in auto and point-of-sale loans beyond its earlier focus on personal loans. Q4 2025 was particularly strong. Fourth-quarter revenue and other income rose 20% year over year to $335 million. GAAP net income of $34 million was a quarterly record and at the high end of Pagaya’s guidance. Earnings per share came in at $0.80, above analysts' forecasts of $0.75. For 2026, management expects network volume to increase from $11.25 billion to $13 billion. Revenue is projected between $1.4 billion and $1.575 billion, implying another year of solid growth, and GAAP net income is forecast at $100 million to $150 million. Pagaya's Stock Volatility Tells a Fintech StoryPagaya’s stock path mirrors that of many fintech peers. After a strong IPO in 2022, the shares plunged and the company completed a 1-for-12 reverse stock split in 2024 to help boost its trading price. In 2025, shares rebounded—rising roughly fourfold through September, when PGY hit a 52-week high near $45. This year the stock has lost roughly one-third since the start of the year and more than 45% since a recent high in January. Despite the volatility, most analysts remain bullish. Of the 12 analysts covering the stock, 10 assign a Buy rating and two assign a Hold. The consensus is a Moderate Buy with an average target of $33.11—around 130% above current levels. Risks Center on Credit Markets and CompetitionSkepticism is reasonable. Pagaya’s model depends on institutional investors continuing to buy its ABS and on lending partners routing applications through its network. A credit market disruption or a spike in consumer loan defaults could reduce both channels significantly. So far this year, capital markets activity has been healthy. In April, Pagaya closed an $800 million consumer loan ABS sale and completed its first auto ABS of the year. The consumer loan offering was increased by 33% due to strong institutional demand, the company said. Investors should also note that equity-based compensation is substantial, and insider selling has appeared in SEC filings following the 2025 run-up. Pagaya does not pay a dividend, so the investment thesis centers on continued growth. Competition from banks developing in-house AI credit models and rival platforms could pressure Pagaya’s results. A High-Risk Bet With Meaningful Upside PotentialPagaya is not for conservative investors. Volatility is likely to continue, and a down credit cycle could materially dampen results. The business model is complex and dependent on outside demand for ABS. But for investors with a higher risk tolerance who believe AI-driven consumer lending represents a durable growth trend, Pagaya’s return to profitability, strong 2026 guidance, active ABS issuance, and a share price well below analyst targets make it worth consideration. The company appears to have turned a corner. Whether the stock follows remains to be seen. |
