Blockchain finance company Figure Technologies (FIGR) has “immense room for growth” and has an “outperform” rating and a new price target of $54 per share, according to analysts at investment firm Bernstein.
The new price target suggests an upside of more than 30% based on FIGR's opening price of $41.02 on Monday. FIGR stock has increased 6.4% since inception and currently sits at $42.76.
“Figure's technology stack brings blockchain capital market liquidity to consumer loans. Converting a “balance sheet-heavy'' lending model into a “capital-light'' marketplace business,'' Bernstein analysts wrote.
“The addressable market for credit tokenization is over $2 trillion, and there is significant room for growth for FIGR, with the potential to expand from HELOCs (home equity lines of credit) to new loan products and even new asset classes such as equities.”
This figure hit the public market in early September, Raised nearly $800 million in initial public offering (IPO) The company offered shares at $25, ultimately valuing the company at about $5.3 billion. Less than a month later, the New York-based company's stock price was up about 75%.
Founded in 2018, the company uses the Provenance blockchain network to facilitate the tokenization of private credit, providing access to capital within days of credit approval in some cases. Figure describes its ecosystem as “the largest non-bank provider of home equity financing,” having originated $16 billion worth of mortgages since its inception.
Bernstein emphasized its position as a niche market leader, while highlighting its strong product-market fit and option to other loan types as potential catalysts for achieving above-target performance.
“As tokenization erodes the over $2 trillion consumer loan origination market, FIGR is positioned to emerge as a strong technology partner for banks and independent originators,” Bernstein's analyst note said.
data from RWA.xyz It shows that the company's blockchain maintains approximately $12.85 billion in active loans, an increase of 10% over the past 30 days. Tradeable and Maple, two companies that participate in the private credit market, have a combined active loan balance of less than $4 billion.
Mike Cagney and June Ou co-founded Figure. Mr. Cagney is the former co-founder of the fintech company SoFi.
