Bernstein analysts have initiated coverage of Figure Technology Solutions with an ‘Outperform’ rating and a price target of $67, suggesting the blockchain-based lending platform may be significantly undervalued at its current trading level of approximately $32. The recommendation was published in a report on Monday. Analysts cited accelerating loan originations and the scaling of Figure’s tokenized credit marketplace as key drivers of their bullish outlook.
Figure’s lending activity has shown notable momentum in recent months. The company originated $1.2 billion in loans in March alone, a 33% increase from the prior month and the first time monthly volumes surpassed the $1 billion mark. First-quarter originations reached $2.9 billion, more than doubling compared to the same period a year earlier and defying the typical seasonal slowdown in demand for home equity products.
The company primarily offers home equity lines of credit, known as HELOCs, which allow homeowners to borrow against the equity in their properties, generally at lower interest rates than unsecured lending products. Figure processes these loans using the Provenance blockchain, which it claims reduces friction and improves efficiency relative to traditional lenders. According to Provenance, this approach allows Figure to save 117 basis points per loan by conducting transactions on the blockchain.
Based on current origination trends, Figure is tracking roughly $12 billion in annualized loan volume. This strong start to the year follows a broadly positive fourth quarter, during which earnings and revenue both increased, though profits came in below analyst expectations. The company went public on the Nasdaq last September in a closely watched debut that valued it at nearly $800 million.
Despite the improved operating performance, Figure shares have declined more than 20% so far this year. Analysts attribute the drop to broader volatility affecting digital asset-linked stocks and sector-specific pressures. The stock has struggled to recover momentum since its market debut.
Bernstein’s valuation framework places Figure at roughly 25 times its projected 2027 EBITDA, a multiple that sits above comparable digital asset companies. Analysts describe this premium as reflecting Figure’s structural prospects as both a tokenization platform and a profitable lending business operating in the private credit market.
Risks to the outlook remain, however. Bernstein notes that HELOC demand can be sensitive to shifts in mortgage refinancing trends, which could affect origination volumes. Additionally, the broader private credit market, which forms a central pillar of Figure’s growth strategy, has shown signs of increasing pressure that could weigh on the company’s expansion plans.
Originally reported by CoinTelegraph.
