Here Is What Is Driving Optimism Around Pagaya Technologies (PGY)

Here Is What Is Driving Optimism Around Pagaya Technologies (PGY) Muhammad Ali Khalid Wed, July 8, 2026 at 4:28 PM GMT+2 2 min read PGY Pagaya Technologies Ltd. (NASDAQ: PGY ) is one of the best 11 small-cap software infrastructure stocks to buy now . On June 11, Texas Capital initiated its coverage of the stock.

The firm estimated a target price of $27, which results in more than 48% upside potential. It also assigned a Buy rating to the stock. Earlier on June 8, Pagaya Technologies Ltd.

(NASDAQ:PGY) revealed that the company has expanded its long-standing collaboration with Upgrade. It brings AI-led credit decisioning of Pagaya to Upgrade's Buy Now, Pay Later (BNPL) solution, Flex Pay. It signifies a major stride in the ongoing engagement between the two entities, expanding towards a new asset class besides personal loans.

Angelo Giampiccolo/Shutterstock. com With the integration of Pagaya into Upgrade's point-of-sale offering, the company can expand its Flex Pay monthly payment options to a larger array of clients at the time of purchase. In line with this expansion, the initial focus will be on the travel merchants space, where Flex Pay has established itself as a trusted payment option for many of the world's leading brands.

Moreover, Upgrade aims to leverage real-time underwriting solutions offered by Pagaya, allowing it to expand its seamless Flex Pay funding options to more clients across its travel partners' network. According to Pagaya's President, Sanjiv Das, the extended collaboration deepens the partnership beyond personal loans. He further stated: "By extending our network across new asset classes, we are supporting Flex Pay as it continues to grow.

This expansion is part of our strategy to extend our point-of-sale business towards more purpose-driven transactions. " Pagaya Technologies Ltd. (NASDAQ:PGY) is a product-focused technology company that aims to cut down manual effort and improve the accuracy of business workflows.

It leverages data science and proprietary AI-enabled technology to serve financial institutions, fintech companies, banks, and real estate service providers. While we acknowledge the potential of PGY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the   best short-term AI stock .

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