PGY Stock Pops Pre-Earnings: Wall Street Bets On Pagaya’s AI-Powered Lending Model

• Wall Street expects Pagaya Technologies to report an earnings per share (EPS) of $0.34 on revenue of $349 million, according to Stocktwits data.
• The lender has beaten earnings expectations in three out of the previous four quarters, while its revenue has surpassed estimates in four out of the past four quarters.
• Analysts at Freedom Capital initiated their coverage of Pagaya last week with a price target of $30 and a ‘Buy’ rating, according to TheFly.

Pagaya Technologies (PGY) shares rose nearly 11% in Monday’s pre-market trade ahead of the artificial intelligence-powered lender’s fourth-quarter (Q4) earnings.

Pagaya is an Israel-based financial services company that utilizes AI to evaluate loan applications, with an aim to be more precise with credit checks.

What Is Wall Street Expecting?

Wall Street expects Pagaya Technologies to report an earnings per share (EPS) of $0.34 on revenue of $349 million, according to Stocktwits data. The lender has beaten earnings expectations in three out of the previous four quarters, while its revenue has surpassed estimates in four out of the past four quarters.

Analysts at Freedom Capital initiated their coverage of Pagaya last week with a price target of $30 and a ‘Buy’ rating, according to TheFly. The firm called Pagaya a leader in AI-enabled credit underwriting with a “unique” two-sided ecosystem.

According to Koyfin, of the 11 analysts covering the PGY stock, 10 have either ‘Buy’ or ‘Strong Buy’ recommendations, while one analyst has a ‘Hold’ rating. The 12-month average price target for the PGY stock is $38.18.

Pagaya’s Recent Partnerships

Pagaya entered into multiple partnerships since the beginning of 2026, with the most recent being a $800 million asset-backed securitization (ABS) transaction announced last week. The company said that 32 investors participated in the program, and since 2018, it has issued more than $34.5 billion across 85 ABS transactions with over 150 institutional investors.

In January, Pagaya entered into a new forward flow agreement with Sound Point Capital Management, wherein the latter purchased up to $720 million of point-of-sale loans sourced through Pagaya’s platform.

How Did Stocktwits Users React?

Retail sentiment around Pagaya Technologies trended in the ‘bullish’ territory at the time of writing, with message volumes at ‘extremely high’ levels. The PGY stock was the third most trending ticker on the platform.

One bullish user recommended that investors park their profits in the PGY stock for the long-term.

Another user stated that even if Pagaya shares soared 300%, the stock would still be undervalued.

PGY stock is down 11% year-to-date, but up 68% over the past 12 months.

Also See: BofA Says 'Stay Long Detroit, Short Davos' Amid Trump's Affordability Push — What Does It Mean?

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