Two major Wall Street investment banks have issued different opinions on the new Public Society Fintech Firm (FIGR), while the company strives to extend its loan and capital markets based on blockchain to the lines of capital on equity.
Keefe, Bruyette & Woods (KBW) launched a coverage of the figure with an “outperformance” note and a price target of 12 months of $ 48.50, which suggests 17.5%. The bank welcomed the early of the credit markets in Tokenized, where it holds 73% of the private credit segment and 39% of all the active in the real world, according to KBW estimates.
Founded by the former CEO of Sofi Mike Cagney, the figure has become public in September and has climbed 12% since its IPO. Its main things tokenize helicoids and connects borrowers to investors via a vertically integrated platform which includes the origin of the loan, distribution and a market for digital assets.
KBW considers the technological battery of figure as underused and capable of supporting a wider range of credit assets, such as mortgage loans and personal loans. He also highlighted products such as Exchange Figure and a tokenization tool for third -party assets.
Another broker, Bernstein, previously launched a coverage on the stock with a more optimistic perspective. It assesses the figure as “outperformance” with a price target of $ 54, quoting that the company does to lend what the stablecoins did for payments, traditional tokenization assets to make markets faster and more efficient.
Read more: the figure is a blockchain pioneer on the credit markets, explains Bernstein, initiating to outperformance
The reverse
Bank of America, however, adopted a more cautious opinion.
He initiated coverage with a “neutral” note and a price target of $ 41, citing the risks concerning the execution, regulations and dependence on the figure with regard to his heloc activity, which still generates most of his profits and is not yet entirely native of blockchain.
Bofa sees Figure Connect – A new market that helps lenders correspond to capital suppliers – as the next growth engine of the company. The bank expects that it represents 75% of the total growth in the company’s income between 2024 and 2027.
While the two banks recognized leadership in the figure in a neglected corner of consumption loans, they have diverged on the ease with which the company can evolve towards a wider fintech platform. The Bofa has cited possible road dams to integrate large institutions, competition from other technology suppliers and the evolution of regulatory rules, including updates to the Truth in Lending law.
The difference in price objectives – $ 48.50 of KBW against $ 41 from the BOFA – reflects the uncertainty surrounding if the infrastructure of the blockchain of figure can move from a niche use to a more central role in modern finance.
Find out more: Price of loans based on blockchain at $ 25 per share, increasing nearly $ 788 million
