Shares of Pagaya Technologies Ltd. (PGY) are surging 5.08% in pre-market trading on Friday, as investors react positively to a recent analyst update. The stock's upward movement comes amid broader market activity and specific company-related news.

The primary catalyst for Pagaya's pre-market rally appears to be UBS's decision to raise its target price for the company. UBS has increased its price target for Pagaya Technologies from $12.5 to $13.75, signaling increased confidence in the company's future prospects. This upward revision has likely sparked renewed interest from investors, driving the stock's significant pre-market gains.

Pagaya Technologies, known for its artificial intelligence-driven financial technology solutions, has been attracting increased attention from Wall Street analysts. The higher price target from UBS could indicate that the firm sees potential for further growth and improved performance from Pagaya in the coming months. As the market digests this new information, it will be interesting to see if the stock can maintain its momentum throughout the regular trading session and in the days to come.