This week started on a high note for Pagaya Technologies (PGY -3.52%) stock, and as Friday loomed the shares still appeared to have momentum. Bolstered by a pair of analyst price target raises, the stock was up by almost 17% week to date before market open that day, according to data compiled by S&P Global Market Intelligence.
Twin price raises
Those prognosticator moves didn't come out of the blue; rather, they were updates on Pagaya following the company's release of second-quarter results last Thursday.
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Of the pair, the more dramatic hike came from Citizens JMP's David Scharf, who now feels Pagaya stock can reach $35 per share. Previously, his level was $26. In making the shift, Scharf maintained his market outperform (i.e., buy) recommendation.
In his new take, according to reports, the analyst was encouraged by the significant growth of activities outside Pagaya's foundational personal loan business. This led him to raise his generally accepted accounting principles (GAAP) per-share earnings multiple, resulting in the price target raise.
A more modest, yet still impactful, move was made by B. Riley's Hal Goetsch. Like Scharf, he kept his existing buy recommendation on Pagaya intact while enacting a fair value assessment change to $54 per share from $46.
More of the same
The two analysts' price target modifications were the latest in a string of such moves following Pagaya's earnings release. There was much to admire about the company's performance, as it boosted its top line by a strong 30% year over year (to $326 million), and increased non-GAAP (adjusted) net income nearly sevenfold to almost $51 million. It easily topped analyst estimates for both metrics.
