Citi Raises Price Target for Pagaya (PGY), Keeps Buy Rating

Pagaya Technologies Ltd. (NASDAQ:PGY) is one of the 12 Best Performing Stocks in the Last 6 Months. On July 18, Citi increased its price target for Pagaya Technologies Ltd. (NASDAQ:PGY) from $16.50 to $40.00 while keeping a “Buy” rating.

The firm highlighted increased network growth expectations and pointed out that private credit momentum has improved. Citi identified Pagaya Technologies Ltd. (NASDAQ:PGY) as its top pick in the LendTech sector.

Citi also noted that the use of pre-screening solutions is rising, which the firm sees as a “2x volume opportunity.” Pagaya Technologies Ltd. (NASDAQ:PGY) is also increasing exposure to buy-now-pay-later services through Walmart’s OnePay, which Citi called an “indirect win.”

The research note also noted that there is potential for Pagaya Technologies Ltd. (NASDAQ:PGY) to expand further as big card-issuing companies try to compete with FinTech companies.

Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology company that provides comprehensive consumer credit and residential real estate products. Through its AI network, the company helps financial institutions to expand access to more customers.

While we acknowledge the potential of PGY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.