Figure (Fig) gets a mix -halong debut on Wall Street as KBW, Bofa Diverge in Outlook
Two major investment banks on Wall Street have released diverse views on the new public fintech firm Figure (Fig), as the company works to expand the blockchain lending platform and capital market beyond the home equity lines.
Keefe, Bruyette & Woods (KBW) began the scope of the figure with an “outperform” rating and a 12-month target price of $ 48.50, suggesting a 17.5% reversed. The bank praised the early dominance of the figure in the tokenized credit markets, which holds 73% of the private credit segment and 39% of all tokenized real-world assets, according to KBW estimates.
Former SOFI CEO Mike Cagney, the figure went public in September and went up 12% since its IPO. Its main business is tookisto with helocs and connects debtors to investors through an upright integrated platform that includes loan source, distribution and a digital asset market.
KBW sees the figure’s tech stack as underutilized and is capable of supporting a wider range of credit assets, such as first-lien mortgages and personal loans. It also pointed out the reverse from products such as figure exchange and a tokenization tool for third-party properties.
Another broker, Bernstein, had earlier started the range in stock with more perspective. It relates to the figure as an “outperform” with a target price of $ 54, noting that the firm is being made for lending on the made of stablecoins for payments, tokenizing traditional ownership to make markets faster and better.
The flipside
However, the Bank of America took a more careful view.
It begins the range with a “neutral” rating and a target price of $ 41, citing the risks around the implementation, regulation and dependence of the Holoc business figure, which still generates most of its revenues and is not yet fully blockchain-native.
The Bofa sees Figure Connect – a new market that helps lenders to capital providers – as the next company growth driver. The bank expects it to account for 75% of the firm’s total revenue between 2024 and 2027.
While both banks recognized the figure’s leadership in a neglected corner of consumer lending, they moved on to how easy the company could measure on a wider FinTech platform. The Bofa cited possible road barriers riding in large institutions, competition from other tech providers and changing regulatory policies, including updates on lending reality.
The difference in the target prices – $ 48.50 from KBW compared to $ 41 from the Bofa – reflects the uncertainty surrounding if the figure’s blockchain infrastructure can move from a suitable use in a more central role in modern finance.
Read more: The Blockchain IPO -based figure price
