BUZZ-Pagaya Technologies extends gains as sentiment improves

Shares of Pagaya Technologies PGY.O jump 16.9% to $17.97 in premarket trading as the fintech looks to extend gains from last two weeks on improving investor sentiment

Stock has climbed 65.6% so far this month after alternative asset manager Blue Owl OWL.N agreed to buy as much as $2.4 billion of consumer loans from the firm and PGY's strong Q4 results

PGY last week said it expects to be profitable on reported basis this year

Analysts said PGY's conviction that it is past most if not all major credit impairments has led investors to be more confident in company's growth trajectory

PGY trades at 12-month forward price-to-earnings ratio of 24.38, compared with rival Upstart Holdings' UPST.O 55.04

Eight of nine brokerages rate PGY stock "buy" or higher and one "hold"; their median PT is $22 - LSEG data

PGY stock slumped 43.9% in 2024