Core Viewpoint - Two major Wall Street investment banks have differing opinions on Figure, a newly public fintech firm focusing on blockchain-based lending and capital markets [1] Group 1: Analyst Ratings and Price Targets - Keefe, Bruyette & Woods (KBW) initiated coverage with an "outperform" rating and a 12-month price target of $48.50, indicating a 17.5% upside [2] - Bernstein also rated Figure as "outperform" with a price target of $54, highlighting its potential to enhance lending efficiency through tokenization [5] - Bank of America (BofA) took a more cautious stance, initiating coverage with a "neutral" rating and a price target of $41, citing execution and regulatory risks [6] Group 2: Company Overview and Business Model - Figure, founded by former SoFi CEO Mike Cagney, went public in September and has seen a 12% increase since its IPO, primarily focusing on tokenizing home equity lines of credit (HELOCs) [3] - The company operates a vertically integrated platform that includes loan origination, distribution, and a digital asset marketplace [3] Group 3: Market Position and Growth Potential - KBW noted Figure's dominance in tokenized credit markets, holding 73% of the private credit segment and 39% of all tokenized real-world assets [2] - BofA identified Figure Connect, a new marketplace for matching lenders with capital providers, as a key growth driver, expecting it to contribute 75% of total revenue growth from 2024 to 2027 [7] Group 4: Challenges and Risks - Both banks recognized Figure's leadership in consumer lending but differed on the scalability of its platform [8] - BofA pointed out potential challenges such as onboarding large institutions, competition, and evolving regulatory frameworks [8] - The disparity in price targets reflects uncertainty regarding Figure's ability to transition its blockchain infrastructure from a niche application to a central role in finance [9]