Bernstein Initiates Outperform Rating for Figure, Targets $54 Price
Bernstein initiated coverage of Figure (FIGR) with an outperform rating and a $54 target price, highlighting its leadership in integrating blockchain into credit markets.
The stock rose 2% to approximately $41.10 in early trading.
Figure is seen as revolutionizing lending by tokenizing traditional assets, akin to the impact of stablecoins on payments.
Figure dominates the tokenized private credit market, holding around 75% of the $17 billion sector.
Its blockchain platform moves lending from a balance-sheet model to a capital-light marketplace, offering direct access to consumer loans.
The addressable market for credit tokenization could exceed $2 trillion, with significant growth potential as Figure expands into more loan products and equities.
Figure's strengths include an experienced management team, a wide distribution network with 170 origination partners, and over 15 private credit investors.
In 2024, Figure is projected to originate about $5.1 billion in home equity lines of credit, capturing roughly 3% of the market.
Revenue is expected to grow from $341 million in 2024 to $754 million by 2027, at a 30% annual growth rate, driven by its Connect marketplace.
Despite trading at a premium valuation, Bernstein believes Figure's market dominance and profitability justify it.
Figure's recent IPO was priced at $25 per share, valuing the company at $787.5 million.
