Goldman Sachs Starts Figure Technology (FIGR) at Buy

Goldman Sachs analyst James Yaro initiates coverage on Figure Technology (NASDAQ: FIGR) with a Buy rating and a price target of $42.00.

The analyst comments: "We initiate coverage of blockchain-enabled fintech lender Figure Technology Solutions (FIGR) with a Buy rating and a $42 12-month price target, based on 42.0x Q5-Q8 adjusted EPS, implying 4% upside. FIGR is a unique lender in public markets, with blockchain and other tech underlying its loans providing efficiencies in origination and sales, benefiting borrowers, originators, and loan buyers. We see share gains within its core home equity loan (HELOC) product, and TAM expansion into other consumer loans. Blockchain tech efficiencies also open up product opportunities beyond consumer loans over time.
We model a FIGR 29% consumer loan volume CAGR from 2024-27E, and 27%/55% top-line/adj. EBITDA CAGRs. Our robust growth forecasts embed: 1) HELOC share gains; 2) FIGR's more efficient HELOCs taking share from other consumer loans; 3) adding non-HELOC 3rd party loans to the FIGR ecosystem; with 4) upside optionality across short-term loan financing, and crypto trading. We expect adjusted pre-tax margins to rise ~29pp from 2024-27E to 47%, as the company drives leverage on a ~45% fixed cost base. Our 55% 2024-27E adj. EBITDA CAGR is well ahead of 28% for peers."

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 $40.30 yesterday.

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