Pagaya: A Mispriced AI Credit Platform Hiding In Plain Sight

Pagaya (PGY) is mispriced as a traditional lender, despite its AI-driven, capital-light credit network model and strong fee-based revenues. PGY's adaptive AI underwriting, granular loan portfolio, and expanding high-quality partnerships create a self-reinforcing moat and improve risk-adjusted returns. Recent oversubscribed ABS issuances, robust GAAP profitability, and 2026 guidance support a Strong Buy rating with a $21.40 base case price target (~62% upside).