Pagaya Tech (PGY) PT Lowered to $25 at Stephens

Stephens analyst Kyle Joseph lowered the price target on Pagaya Tech (NASDAQ: PGY) to $25.00 (from $33.00) while maintaining a Overweight rating.

The analyst commented: "While Net Income/EPS exceeded expectations, Volumes/Revenues were light and PGY's '26 guidance came in below expectations. PGY disclosed that it had tightened underwriting (cutting certain tiers), weighing on Network Volume (NV) and ultimately on '26 KPIs/guidance. While PGY tightened underwriting, credit continues to perform consistently, and there were no incremental write-downs in 4Q. However, guidance is shy of expectations as underwriting weighs on Volumes, growth and scale expectations for '26. The tighter underwriting surprised many, at the tail-end of consumer finance 4Q earnings, and most companies that have reported, to date, had not discussed tightening. We detail guidance factors on the following page but note guidance was broadly below expectations on underwriting. This was not a credit miss, and, theoretically, PGY is getting ahead of potential credit changes. That said, the lofty Rev/EPS growth story has been put on hold. Maintain OW, PT to $25 (from $33) on lower estimates."

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