Bernstein Initiates Figure (FIGR) at Outperform: Blockchain Credit Market Leader with $54 Target

Investment firm Bernstein has launched coverage of Figure Technologies (FIGR) with an outperform rating and $54 price target, identifying the company as the dominant player bringing blockchain technology to credit markets. Figure's stock rose 2% in early trading to approximately $41.10 following the announcement. According to Bernstein analysts led by Gautam Chhugani, Figure is revolutionizing lending similar to how stablecoins transformed payments, utilizing tokenization to make financial markets faster and more efficient. The company commands approximately 75% of the $17 billion tokenized private credit market. Figure's blockchain platform transitions lending from traditional balance-sheet-heavy models to capital-light marketplaces, providing investors direct access to consumer loans. Bernstein estimates the total addressable market for credit tokenization exceeds $2 trillion, offering substantial growth potential as Figure expands beyond home equity lines into additional loan products and equities. The broker highlighted Figure's experienced management team and extensive distribution network featuring 170 origination partners and over 15 private credit investors as key competitive advantages. Figure currently ranks as the leading independent home equity line of credit (HLOC) lender in the United States, originating approximately $5.1 billion in 2024 representing about 3% market share. Bernstein projects revenue growth from $341 million in 2024 to $754 million by 2027, representing a 30% compound annual growth rate driven by Figure's Connect marketplace. While trading at premium valuations of approximately 19x EV/2027 EBITDA and 30x P/E, Bernstein asserts Figure's market dominance, profitability, and exposure to the rapidly expanding tokenization trend justify the valuation. Figure completed its initial public offering last month at $25 per share, establishing a company valuation of $787.5 million.