FIGR receives Bernstein's top pick recommendation: target price raised to $72, Q4 data supports

2026-01-13 10:41:43

Bernstein analysts recently gave Figure Technology Solutions (FIGR) a big boost. The target price was raised from $54 to $72, a 33% increase, and it was listed as a 2026 top pick. Compared to Monday’s close at $52.23, this implies an approximate 38% potential upside. Supporting this optimistic view is FIGR’s outperformance in the tokenized lending market.

The Core Logic Behind the Upgrade

Led by Gautam Chhugani, Bernstein’s analyst team pointed out in their latest client report that FIGR’s advantages are evident on several levels:

Tokenized lending growth exceeds expectations

According to preliminary Q4 2025 operational data released by FIGR, consumer loan transaction volume reached $2.71 billion, a 10% quarter-over-quarter increase. Among them, the tokenized lending platform Figure Connect handled about 46% of the credit volume from the previous quarter. This figure indicates that the tokenized channel is becoming the company’s core growth engine rather than a peripheral business.

Operating leverage continues to improve

Analysts especially emphasized the point of “continuous improvement in operating leverage.” This means that as transaction volume grows, FIGR’s unit costs are decreasing, and profit margins are improving. This is a positive sign of sustainable growth.

Fundamentals Support and New Growth Points

Indicator	Data	Explanation
Q4 consumer loan transaction volume	$2.71 billion	Up 10% quarter-over-quarter
Figure Connect’s share	46%	Contribution from the tokenized platform
YLDS circulation	$328 million	Significant growth in yield-stablecoins
Target price	$72	Raised 33% from $54

In addition to the existing core HELOC business, FIGR is actively expanding into new product lines:

Debt Service Coverage Ratio (DSCR) loans
Small and micro enterprise loans
Crypto asset-backed loans
Tokenized equity platform (planned)

Analysts believe that equity tokenization is a long-term strategic option. It is not a revenue driver in the short term but has huge long-term potential.

Policy Environment and Market Opportunities

The analyst report also specifically mentions the significance of the U.S. “Clear Act” (a proposed crypto market structure bill). A clearer regulatory framework is beneficial for blockchain lending institutions like FIGR. By replacing traditional banking ledgers with blockchain infrastructure under clear regulatory oversight, the advantages of this model will become even more apparent.

This is not just technological innovation but a business model innovation supported by policy.

Summary

Bernstein’s upgrade is not baseless. Q4 data validates the growth potential of tokenized lending, the improvement in operating leverage indicates a viable business model, expansion into new product lines opens growth space, and a clearer policy environment reduces uncertainty. From an analyst’s perspective, this is a fundamentally positive story.

However, it’s important to note that the 38% potential upside is based on the target price; the actual market performance will still depend on subsequent earnings and market sentiment. But from a fundamental standpoint, FIGR is indeed doing the right thing.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.