Freedom Broker Starts Figure Technology (FIGR) at Buy

Freedom Broker analyst Lemar Clarke initiates coverage on Figure Technology (NASDAQ: FIGR) with a Buy rating and a price target of $40.00.

The analyst comments "We initiate coverage of Figure Technology Solutions (FIGR) with a Buy rating and a $40 PT, implying ~60% upside. Figure has built the HELOC on blockchain rails, cutting origination cost from an industry average of $11-12k to <$1k. It is turning that cost advantage into a capital-light marketplace: ~490 banks, credit unions and mortgage lenders originate on Figure's system under their own brand. The shares are down ~39% YTD and trade at ~9x our 2027E adj. EBITDA, below the 16x peer median despite faster EBITDA growth (+43% vs. ~30%) and wider margins (54% vs. 34%). We think the market is penalizing the very shift that makes the model more valuable. Figure Connect, which connects partner lenders with institutional investors, carries the lowest take rate, but also the highest margin and no capital commitment. We view this dynamic as a widely misunderstood aspect of the story which has resulted in underperformance providing an attractive opportunity to own shares at a reasonable valuation. Our $40 PT is based on 14x our 2027E adj. EBITDA of $682mm."

For an analyst ratings summary and ratings history on Figure Technology click here. For more ratings news on Figure Technology click here.

Shares of Figure Technology closed at $25.05 yesterday.

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