Pagaya Technologies Q2 Report: Strong Performance and Positive Outlook

Canaccord Genuity's Joseph Vafi raised their price target on Pagaya Technologies (NASDAQ: PGY) by 16.7% from $3 to $3.5 on August 14, 2023. The analyst maintained their Strong Buy rating on the stock.

In its Q2 2023 earnings report released on August 10, 2023, Pagaya Technologies delivered on both the top and bottom lines, as characterized by Vafi. The company's value proposition, defined as fee revenue less production costs, is expected to resonate with partners, the analyst predicted. Vafi also pointed to strong growth in the auto vertical, which remains relatively new for Pagaya, as a factor contributing to their price target hike.

For Q2 2023, Pagaya Technologies reported earnings per share (EPS) of $0.00, which missed the Zacks Consensus Estimate of $0.01 but was in line with Q2 2022's $0.00. The company generated revenue of $185.69 million, which missed the Zacks Consensus Estimate by 0.41% but beat Q2 2022's $181.55 million by 2.3%. Additionally, Pagaya's adjusted EBITDA for Q2 2023 reached $17.5 million, representing a significant increase of 255% year-over-year.

Looking ahead, Pagaya Technologies provided guidance for Q3 2023 and FY 2023. For the third quarter, the company expects revenue in the range of $190 million to $200 million and adjusted EBITDA between $10 million and $20 million. For the full fiscal year 2023, Pagaya anticipates network volume to range from $7.6 billion to $8.1 billion, revenue to be between $775 million and $825 million, and adjusted EBITDA to range from $40 million to $50 million.

Co-Founder & CEO Gal Krubiner expressed satisfaction with the company's performance, stating, "We delivered another strong quarter while advancing our core mission to connect more people to financial opportunity." Krubiner highlighted the achievement of record-high network volume and sustainable gains in profitability through increased monetization of the network and cost discipline. With continued momentum in the business, Pagaya Technologies raised their network volume and adjusted EBITDA outlook for the year.

In addition to their rating on Pagaya Technologies, on August 14, 2023, analyst Joseph Vafi lowered their price target on Nuvei Corp by -42.9%, from $70 to $40, while maintaining a Strong Buy rating.

According to data compiled by WallStreetZen, Joseph Vafi is ranked in the top 11% out of 4,298 Wall Street analysts, with an average return of 7.8% and a 41.8% win rate. Vafi specializes in the Industrials, Technology, and Financial Services sectors.

Currently, 100% of top-rated analysts rate PGY (Pagaya Technologies) as a Strong Buy or Buy, with no analysts considering it a Hold. None of the analysts either recommend or strongly recommend selling the stock.

Since the release of Pagaya Technologies' latest quarterly report on August 10, 2023, the stock price has increased by 14.7%. However, on a year-over-year basis, the stock has experienced a decline of 86.9%. During this period, PGY has underperformed the S&P 500, which is down 6.7%.

Pagaya Technologies Ltd. is a financial technology company operating in Israel, the United States, and the Cayman Islands. The company develops and implements proprietary artificial intelligence technology and related software solutions to assist partners in originating loans and other assets. Pagaya's partners include high-growth financial technology companies, incumbent financial institutions, auto finance providers, and brokers. Founded in 2016, the company is headquartered in Tel Aviv, Israel.

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