Bernstein has initiated coverage of Figure (FIGR) with an outperform rating and a $54 price target, implying roughly 35% upside from Friday’s close of $40, the brokerage said in a Monday report. The stock rose about 2% in early trading to $41.10.

The broker described Figure as a leader in bringing blockchain to credit markets, comparing its impact on lending to what stablecoins achieved for payments. Figure tokenizes traditional assets, creating faster, more efficient markets.

Holding roughly 75% of the $17 billion tokenized private credit market, Figure is the clear frontrunner, according to analysts led by Gautam Chhugani. Its blockchain platform shifts lending from a balance-sheet-heavy model to a capital-light marketplace, giving investors direct access to consumer loans.

Bernstein estimates the addressable market for credit tokenization exceeds $2 trillion, offering “tremendous growth headroom” as Figure expands beyond home equity lines into other loan products and equities. The report highlights Figure’s experienced management, 170 origination partners, and over 15 private credit investors as key strengths.

Figure is already the top independent home equity line of credit (HLOC) lender in the U.S., originating roughly $5.1 billion in 2024, about 3% of the market. Bernstein projects revenue growth from $341 million in 2024 to $754 million by 2027, a 30% CAGR, driven by its Connect marketplace. At roughly 19x EV/2027 EBITDA and 30x P/E, Figure trades at a premium, which Bernstein says is justified by its market dominance, profitability, and exposure to the growing tokenization trend.

The company went public last month, pricing its IPO at $25 per share for a valuation of $787.5 million.