Figure Technology Solutions' (FIGR) fundamentals have strengthened as recent momentum at its Figure Connect blockchain-based loan marketplace underpinned a stronger revenue growth outlook into 2028, BofA Securities said in a Wednesday note.

The company increased volume by 132% in Q2 from a year ago, with Figure Connect boosting its contribution to total volumes to 65% from 42% a year earlier, the investment firm said, adding that total partner base growth of 26% sequentially was "most impressive."

Figure's stock valuation was "expensive" in January due to an "unusual" rise to $78 from Q4 of 2025, causing the firm to downgrade to stock to underperform, after which the stock fell to a $25 to $35 range, resetting the valuation to a more reasonable level that is better aligned with the company's strong growth outlook and improving fundamentals, according to the note.

The investment firm said it remains cautious given uncertainty around the company's true total addressable market, potential pressure on take rates over time, limits to broader adoption, and sensitivity to crypto market conditions.

BofA Securities upgraded the stock to neutral from underperform and raised the price target to $49 from $31.

Figure Technology Solutions shares were 2.9% higher in Wednesday trading.

Price: 39.39, Change: +1.13, Percent Change: +2.94