Pagaya Technologies Ltd. (PGY) is a Market Outperform on Strong Unit Economics and Operating Leverage: Citizens

Core Insights - Pagaya Technologies Ltd (NASDAQ:PGY) is identified as a promising investment opportunity with a target price of $35, as reiterated by analysts at Citizens [1] - The company is recognized for its strong unit economics and operating leverage, leading to robust EBITDA margins and a gross profit margin of 42.43% [2] Business Model and Growth Strategy - Pagaya operates a B2B2C model that integrates directly into lenders' platforms, facilitating underwriting and turn-downs, which has resulted in significant growth through new lender additions [3] - The company is diversifying its offerings beyond personal loans into auto point-of-sale and other product verticals to enhance growth metrics [3] Strategic Partnerships - A strategic partnership with Achieve was established to enhance consumer access to personal loans by integrating Pagaya's AI-powered underwriting technology into Achieve's platform [4][5] - This collaboration aims to responsibly increase access to personal loans while supporting Achieve's long-term vision [5]