Figure Technology Shares Rally as BofA Upgrades to Neutral

Shares of Figure Technology Solutions Ltd (NASDAQ:FIGR) climbed 4.8% in premarket trading on Wednesday after BofA Securities analyst Craig Siegenthaler lifted his rating on the stock from Underperform to Neutral, also increasing the price target to $49.00 from $31.00.

The rating action follows improved revenue growth momentum at Figure Connect, the company's blockchain-native loan marketplace. BofA Securities raised its price-target multiple to 25x from 17.5x, citing a more favorable revenue growth outlook through 2028.

Figure Technology posted 132% year-over-year volume growth in the second quarter of 2026, with Figure Connect accounting for 65% of total volumes, up from 42% in the prior-year period. During the quarter, the company added 102 partners, growing its total partner base by 26% quarter over quarter.

For the third quarter of 2026, the company guided to a 16% sequential increase in volumes. July volumes reached $1.7 billion, implying a quarterly run rate of $5.1 billion. This guidance does not yet incorporate the impact of Figure Technology's Kiavi acquisition, which is expected to contribute $7 billion to total volumes.

BofA Securities indicated that its previous Underperform rating had been largely based on the stock's valuation as of January 2026. The analyst now says that valuation concerns have eased while the fundamental narrative has become more compelling.

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