Pagaya Technologies Ltd. (NASDAQ:PGY) is a top high short interest stock with significant upside potential. Keefe Bruyette lowered the price target to $35 from $38 while maintaining an Outperform rating. In Q3 2025, Pagaya saw a 19% increase in network volume to $2.8 billion and a 36% rise in total revenue to $350 million.

The company is expanding its B2B2C model with a record number of partners in the pipeline. Management projects full-year network volume between $10.5 billion and $10.75 billion, with total revenue potentially reaching $1.325 billion. Pagaya uses AI-powered technology for financial services in the US, Israel, and the Cayman Islands.

While Pagaya shows promise, other AI stocks may offer more potential with less downside risk. For those seeking undervalued AI stocks, a free report on the best short-term AI stock is available. The article was originally published by Insider Monkey.

Read more at Yahoo Finance: Keefe Bruyette Cautious on Pagaya Technologies (PGY) Amid Consumer Finance and Payments Groups Rating Adjustments