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Bernstein Initiates Coverage of Figure With $54 Target, Calls It Blockchain Credit Leader

KBW highlights Figure’s leadership in tokenized credit markets, while Bank of America raises concerns over execution risks and reliance on non-blockchain HELOC business.

Summary

Keefe, Bruyette & Woods (KBW) initiated coverage of Figure with an “Outperform” rating, citing its dominance in tokenized credit markets and upside potential beyond home equity lines of credit (HELOCs). In contrast, Bank of America issued a “Neutral” rating, citing execution risks and overreliance on Figure’s HELOC business. The gap in price targets underscores uncertainty around Figure's ability to scale its blockchain platform. Figure, led by former SoFi CEO Mike Cagney, has expanded into blockchain lending but still generates most of its revenue from HELOCs, a non-blockchain-native product.

Terms & Concepts
  • Tokenized Credit Markets: Financial markets where traditional credit products, such as loans, are represented as digital tokens on a blockchain, enhancing liquidity and efficiency.
  • Home Equity Line of Credit (HELOC): A revolving line of credit secured by the equity in a borrower's home, offering flexibility in withdrawals and repayment.
  • Blockchain Lending: A digital lending model where blockchain technology is used to tokenize loans, facilitating faster transactions and greater transparency.