11:07 AM EDT, 10/06/2025 (MT Newswires) -- Figure Technology Solutions' ( FIGR ) future growth depends heavily on the success of its Figure Connect marketplace platform, and it faces some key risks in concentration and execution, BofA Securities said in a Monday note initiating coverage of the company's stock.

Figure is now the top non-bank provider of home equity line of credit in the US, and the Figure Connect platform is expected to drive around 75% of its total revenue growth from 2024 through 2027, BofA analysts said. The company is a first-mover in the tokenized real-world-asset market, controlling more than 70% of the market share, and completed the first AAA-rated securitization of blockchain-native consumer loans, they added.

The analysts said they see a strong cyclical setup for home equity lines of credit given the current macroeconomic environment, with rising home prices combined with elevated mortgage interest rates making refinancing through cash-out options less attractive. There is also less competition in mortgage technology after the acquisition of Black Knight by Intercontinental Exchange ( ICE ) , according to the note.

However, most of Figure's profits came from home equity line of credit loans and in businesses not fully run on blockchain rails, which are not expected to grow moving forward, according to the note. The company has also identified a material weakness in its financials that needs to be resolved to avoid a negative impact on investor confidence, the note said.

BofA initiated coverage of the company's stock at neutral with a price target of $41.

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