Bernstein initiated coverage of Figure (FIGRY) with a better rating and a $ 54 price target and called it a leader in bringing blockchain to credit markets, the broker said in a Monday report.
The stock was 2% higher in the early trade, about $ 41.10.
Bernstein said figure does to give it what stableecoins did for payments, tokenization of traditional assets to make markets faster and more efficient.
With approx. 75% of the Tokenized Private Credit Market of $ 17 billion is the clear front runner, according to analysts led by Gautam Chhugani.
The figure’s blockchain platform switches loans from a balance-heavy model to a capital-light marketplace, giving investors direct access to consumer loans, the report noted.
Bernstein estimated that the addressable credit tokenization market exceeds $ 2 trillion, giving “huge growth height” as the figure is expanded beyond the home’s equity lines for other loan products and even shares.
The broker quoted the figure’s experienced management team and broad distribution networks with 170 origin partners and over 15 private credit investors as key strengths. Figure is already the top independent home capital line (HLOC) lender in the United States, which stems from approx. $ 5.1 billion in 2024, or approx. 3% of the market.
Bernstein expects revenue to rise from $ 341 million in 2024 to $ 754 million in 2027, an annual growth rate of 30%, driven by Figure’s Connect Marketplace. At around 19x EV/2027 EBITDA and 30X P/E, Figure deals with a prize, but Bernstein said its market dominance, profitability and exposure to the rapidly growing tokenization trend justifies valuation.
Figure became public last month. It priced its IPO to $ 25 per Share and appreciated the company for $ 787.5 million.
Read more: Blockchain-based lender figure prices IPO at $ 25 per Stock which raises nearly $ 788m
