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Investing.com - DA Davidson analysts have expressed optimism about the upcoming public listing of Figma (NYSE:FIG), describing it as "an ideal IPO candidate" that could lead additional software IPOs over the next 12-18 months. The IPO comes amid a cautious market that has seen only 77 new listings in the past year, down 65% from the previous period.
The design software company is expected to price its IPO and begin trading later this week, with the current pricing range indicating a fully diluted market capitalization between $14.6 billion and $16.4 billion, according to DA Davidson.
Analysts at the firm highlighted Figma’s attributes that make it attractive to investors, noting that the company "checks the boxes in terms of growth, profitability, and technology."
DA Davidson pointed to market conditions that could favor Figma’s debut, stating that "investors have been starved of new entrants into public markets in recent years as indicated by the success of oddball stocks like Coreweave and Circle."
The firm anticipates strong interest from both institutional and retail investors, citing Figma’s "solid growth potential, positive operating margin trends, and strong brand awareness" as factors that could contribute to "a positive initial reaction" when trading begins.
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