Bernstein initiated protection of Determine (FIGR) with an outperform ranking and a $54 worth goal, calling it a pacesetter in bringing blockchain to credit score markets, the dealer mentioned in a Monday report.
The inventory was 2% greater in early commerce, round $41.10.
Bernstein mentioned Determine is doing for lending what stablecoins did for funds, tokenizing conventional belongings to make markets quicker and extra environment friendly.
With roughly 75% of the $17 billion tokenized non-public credit score market, Determine is the clear frontrunner, in keeping with analysts led by Gautam Chhugani.
Determine’s blockchain platform shifts lending from a balance-sheet-heavy mannequin to a capital-light market, giving buyers direct entry to shopper loans, the report famous.
Bernstein estimated that the addressable marketplace for credit score tokenization exceeds $2 trillion, offering “great development headroom” as Determine expands past house fairness traces into different mortgage merchandise and even equities.
The dealer cited Determine’s skilled administration group and huge distribution community, with 170 origination companions and over 15 non-public credit score buyers, as key strengths. Determine is already the highest unbiased house fairness line of credit score (HLOC) lender within the U.S., originating about $5.1 billion in 2024, or roughly 3% of the market.
Bernstein expects income to rise from $341 million in 2024 to $754 million by 2027, a 30% annual development price, pushed by Determine’s Join market. At about 19x EV/2027 EBITDA and 30x P/E, Determine trades at a premium, however Bernstein mentioned its market dominance, profitability, and publicity to the fast-growing tokenization development justify the valuation.
Determine went public final month. It priced its IPO at $25 per share, valuing the corporate at $787.5 million.
Learn extra: Blockchain-Based mostly Lender Determine Costs IPO at $25 Per Share, Elevating Almost $788M
