Oppenheimer Initiates Outperform on Pagaya Technologies

Analysts predict a significant upside for Pagaya Technologies as Oppenheimer initiates coverage with an outperform recommendation. Despite a projected revenue decline, the bullish sentiment and substantial institutional interest may influence stock performance positively.

Date: 02-10-2024

AI Rating: 6

Oppenheimer's recent initiation of coverage for Pagaya Technologies with an outperform recommendation indicates strong positive sentiment in the market regarding PGY's potential. The analyst price forecast suggests a 155.33% upside from the current closing price, positioning it for significant growth.

However, the projected annual revenue for Pagaya Technologies is estimated at $847MM, which represents a decrease of 8.51%. This revenue decline could raise concerns among investors about the company's financial health and future growth prospects.

Importantly, the projected annual non-GAAP EPS is reported to be -0.10, which is another negative indicator as it reflects expected losses per share.

Nevertheless, the report notes a growing institutional interest in Pagaya Technologies, indicating confidence from these investors, which could help stabilize the stock price. There are currently 154 funds or institutions reporting positions in Pagaya, marking a notable increase of 45.28% in the last quarter. This uptick in institutional ownership reflects increased confidence in the company's long-term potential.

The average portfolio weight of all funds in PGY has increased by 4.15%, and total shares owned by institutions have risen by 18.18%. The low put/call ratio of 0.29 further indicates a bullish outlook among investors, suggesting that many expect the stock to perform well in the future.

Stocks: PGY