Keefe Bruyette Cautious on Pagaya Technologies (PGY) Amid Consumer Finance and Payments Groups Rating Adjustments

Pagaya Technologies Ltd. (NASDAQ:PGY) is one of the best high short interest stocks with biggest upside potential. On January 2, Keefe Bruyette reduced the price target on Pagaya to $35 from $38 while maintaining an Outperform rating. This sentiment was announced as the firm adjusted price targets in consumer finance and payments groups.

In Q3 2025, Pagaya Technologies Ltd. (NASDAQ:PGY) achieved a 19% year-over-year increase in network volume to $2.8 billion and a 36% rise in total revenue to $350 million. This performance was anchored by a 31% growth in personal loans and an expansion in auto and point-of-sale volumes, which reached annualized run-rates of $2.2 billion and $1.4 billion, respectively.

Pagaya is leveraging its B2B2C model to institutionalize long-term relationships and reported the highest number of partners in its onboarding queue in company history. This pipeline includes up to 8 new partners across personal loans, auto, and POS asset classes, including mega billion-dollar partners.  Management now expects full-year network volume between $10.5 billion and $10.75 billion and total revenue up to $1.325 billion, with current cash reserves projected to fund operations well into 2028.

Pagaya Technologies Ltd. (NASDAQ:PGY) is a product-focused technology company that deploys data science and proprietary AI-powered technology for financial services and other service providers, their customers, and asset investors in the US, Israel, and the Cayman Islands.

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.