Analysts Lift Pagaya (PGY) Price Targets Following Record Q2 2025 Performance

Pagaya Technologies Ltd. (NASDAQ:PGY) is one of the 10 Hot Mid Cap Stocks to Buy Now. On August 11, JMP Securities increased its price target for Pagaya Technologies Ltd. (NASDAQ:PGY) from $26 to $35 and kept a Market Outperform rating.

This decision came after Pagaya Technologies Ltd. (NASDAQ:PGY) reported Q2 2025 results.  JMP analysts noted that the company is at an “inflection point” where almost all incremental gross profit will now convert to pretax profit.

Previously, on August 8, Keefe, Bruyette & Woods also increased the price target for Pagaya Technologies Ltd. (NASDAQ:PGY) from $27 to $38 from $27 and maintained an Outperform rating.

The firm described the company’s recent quarter as “record setting.” Pagaya Technologies Ltd. (NASDAQ:PGY) reported a record GAAP net income of $17 million, which is up $91 million compared to the same quarter last year. This performance was driven mainly by revenue growth and lower expenses. The company also reached a record network volume of $2.6 billion, up 14% year-over-year, driven by growth in its Auto and Point-of-Sale verticals. Additionally, Pagaya Technologies Ltd. (NASDAQ:PGY) achieved a record adjusted EBITDA of $86 million, up $36 million year-over-year.

Keefe, Bruyette & Woods pointed out that Pagaya Technologies Ltd. (NASDAQ:PGY) is “undervalued when compared to peers.”

Since the company reported its Q2 2025 results on August 7, Pagaya Technologies Ltd. (NASDAQ:PGY) has gained more than 20% as of August 29.

Pagaya Technologies Ltd. (NASDAQ:PGY) is a financial technology company that uses its AI network to provide comprehensive consumer credit and residential real estate products.

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.

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