Figma stock initiated at Neutral by BofA Securities with $85 price target

Investing.com - BofA Securities initiated coverage on Figma Inc (NYSE:FIG) with a Neutral rating and a price target of $85.00 on Monday. The company, currently valued at $38.71 billion, maintains impressive gross profit margins of 88.5% and a healthy liquidity position with a current ratio of 3.54.

The research firm cited Figma’s strong position to continue gaining market share in the $36 billion digital design industry, highlighting several competitive advantages for the user interface/user experience (UI/UX) design leader. According to InvestingPro data, analysts expect Figma’s revenue to grow by 37% this fiscal year, though the stock currently trades above its Fair Value.

BofA Securities noted Figma’s large user base of 13 million monthly active users and 450,000 paid customers as a key strength for the company.

The firm also pointed to Figma’s comprehensive offering that spans whiteboarding, development, website, social media, and vector capabilities, along with its collaborative features.

BofA Securities additionally highlighted Figma’s "powerful set of generative AI features" as part of the company’s competitive advantages in the digital design space.

In other recent news, Figma Inc has seen a flurry of analyst activity as several firms initiated coverage on the company. William Blair has rated Figma with an Outperform rating, highlighting its dominant position in the user interface and user experience design market. Wolfe Research also initiated coverage with a Peerperform rating, emphasizing Figma’s strong growth rate of 46% and high customer retention rates, which exceed 90% overall.

Meanwhile, Wells Fargo and Morgan Stanley both started coverage with an Equal Weight rating, setting price targets of $82.00 and $80.00, respectively. Wells Fargo noted the company’s high enterprise value to sales ratio, one of the highest in software history. Morgan Stanley highlighted Figma’s role as the industry standard in product design software, particularly its competitive edge in real-time collaboration.

Additionally, Goldman Sachs provided a Neutral rating with a $48.00 price target, describing Figma as a "generational design tool" evolving into a comprehensive product development platform. These recent developments reflect a range of perspectives on Figma’s market positioning and future potential.

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