Wall Street Divided on Figure’s Blockchain Lending Potential
- Keefe, Bruyette & Woods (KBW) rated Figure (FIGR) as “outperform” with a price target of $48.50, indicating a potential upside of 17.5%.
- Figure holds a dominant position in tokenized credit markets, with estimates showing it controls 73% of the private credit segment and 39% of all tokenized real-world assets.
- Bank of America initiated coverage with a “neutral” rating and a lower price target of $41, citing execution and regulatory risks.
- Figure’s core business focuses on tokenizing home equity lines of credit (HELOCs), which remains its primary profit source.
- Both banks recognized Figure’s leadership in consumer lending but differed on its scalability into broader fintech solutions.
The contrasting views reflect uncertainty regarding Figure’s ability to expand its blockchain infrastructure beyond niche applications in finance. KBW sees significant growth potential, while BofA highlights challenges that may impede progress.
With KBW projecting a price target of $48.50 compared to BofA’s $41, the debate underscores the complexities facing Figure as it navigates the evolving landscape of DeFi and traditional lending markets.
