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Pagaya Technologies undervalued with 34% upside, strong Q2 growth, but risks remain from credit and funding issues.

Analyst Insights
29 Sep 2026
Seeking Alpha
View Source
Bullish
Pagaya Technologies undervalued with 34% upside, strong Q2 growth, but risks remain from credit and funding issues.

Pagaya Technologies is currently undervalued based on GAAP metrics, trading at 11.6 times its projected 2026 earnings with a 12-month price target of $28, implying a 34% potential upside. The company showed strong operating leverage in Q2, with a 33% increase in volume, 19% revenue growth, and a 6% reduction in core operating expenses. However, adjusted earnings per share may overstate profitability due to recurring fair value losses on retained securitization interests, which are a significant cost. Key risks include downturns in consumer credit, disruptions in funding markets, rising interest rates, and potential dilution, so investors should consider volatility when sizing positions.

Pagaya Technologies is the subject of this analysis, and here is Pluang's market snapshot for Financials-sector US stocks as of Sep 29, 2026 21:36 WIB: out of 85 priced stocks, 25 rose and 60 fell. Notable movers include CLSK at USD 13.65 with a 2.36% increase and a typical hold time of 20 days, GEMI at USD 5.31 with a 2.12% rise but 100% sell order activity, and MAIN at USD 56.22 with a 2.09% gain and a typical hold time of 89 days.

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