Figure Technology Solutions (FIGR) climbed 21.29% on Tuesday after Mizuho issued a cautiously optimistic note on the blockchain-based consumer lending platform. The equity research company said it was “encouraged” by Figure’s “aggressive” push to expand its presence and diversify its products across the broader U.S. consumer credit market.
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Mizuho Sees Upside from Push into Auto Loans Market
In giving his review of Figure, Mizuho’s four-star analyst Dan Dolev trimmed his FIGR price target by 14%, from $64 to $55, implying about 45% upside. However, Dolev maintained his Outperform (Buy) rating on the consumer lending company, noting its recent fourth-quarter fiscal 2025 earnings results.
Defending the rating, the analyst pointed to Figure’s announcement late last month of a new partnership with Agora Data, the fintech platform powered by AI for auto financing. Dolev contended that this indicates Figure’s plan to leverage its proprietary platforms, such as the lend-borrow DemoPrime marketplace and the Connect private credit loan securitization platform, to enter the auto loans market.
Analyst Flags Potential for Bigger Profits
With a market worth about $670 billion, the auto loan market is more than double the size of Figure’s existing home-equity line of credit market, the Mizuho analyst pointed out. He added that Figure’s positioning means it can tap this market to generate very high profit margins on revenue.
This could make it easier for Figure to achieve its aim of reaching an earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of more than 60%, as opposed to its current record of about 50%, the analyst contended.
Is FIGR a Good Stock to Buy?
Analysts on Wall Street remain very upbeat about Figure’s shares and have a Strong Buy consensus rating on the stock. This is based on seven Buys and one Sell issued over the past three months.
In addition, the average FIGR price target of $59.38 implies about 55% upside from current trading levels.
