Assessing Pagaya Technologies (PGY) Valuation After New AI Underwriting Partnership with Achieve

Pagaya Technologies (PGY) just landed a fresh commercial win, as digital finance player Achieve agreed to plug Pagaya's AI underwriting into its personal loan platform to widen access for a broader mix of consumers.

See our latest analysis for Pagaya Technologies.

This Achieve deal lands as Pagaya’s share price sits at $22.93. Strong year to date share price returns suggest momentum is still constructive despite a sharp 90 day share price pullback and a hefty one year total shareholder return.

If this kind of AI driven lending story interests you, it could be a good moment to see what else is out there with high growth tech and AI stocks.

With shares up more than 160 percent over the past year but still trading at a steep discount to analyst targets, the key question now is whether Pagaya remains mispriced or if the market is already factoring in its next phase of growth.

Most Popular Narrative Narrative: 43.4% Undervalued

Pagaya’s most followed narrative pegs fair value far above the last close of $22.93, framing the stock as significantly misaligned with its long run earnings power.

Optimization of financing structure, illustrated by the recent successful $500M bond issuance reducing cost of capital and extending debt maturities, improves cash flow and provides capital flexibility. This enables further investment in growth initiatives and supports future increases in earnings and net income.

Read the complete narrative.

Want to see how ambitious revenue growth, margin expansion, and a future profit multiple all combine into this upside case? The narrative spells out the full roadmap.

Result: Fair Value of $40.50 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, regulatory scrutiny of AI underwriting, along with any stumble in credit model performance, could quickly challenge the growth and valuation assumptions underpinning this upside case.

Find out about the key risks to this Pagaya Technologies narrative.

Build Your Own Pagaya Technologies Narrative

If you see the story differently or want to stress test the assumptions with your own work, you can build a custom narrative in minutes: Do it your way.

A great starting point for your Pagaya Technologies research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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