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Investing.com - RBC Capital lowered its price target on Figma Inc (NYSE:FIG) to $65.00 from $75.00 on Thursday, while maintaining a Sector Perform rating on the stock. The company, currently trading at $55.47 with a market capitalization of $33.21 billion, has seen its stock decline significantly, now trading near its 52-week low.
The firm cited Figma’s Q2 results, which showed revenue growth of 41% year-over-year, in line with consensus expectations, while profitability came in modestly below consensus when adjusted for outliers. According to InvestingPro data, the company maintains impressive gross profit margins of 88.53%, though it remains unprofitable over the last twelve months.
RBC Capital noted strength in Figma’s customer metrics, with $10K+ customers increasing 31% year-over-year and $100K+ customers growing 42% year-over-year. The company also maintained solid $10K+ customer net dollar retention (NDR) of 129%, compared to 132% in the previous quarter and 130% in the same period last year.
Despite Figma shares becoming less expensive at 22.8x CY26E Revenue, RBC Capital still views the valuation as full and suggests waiting for a better entry point.
The new price target of $65 represents 25.5x EV/CY26E revenue, down from the previous multiple of 31x.
In other recent news, Figma Inc. reported second-quarter revenue of $250 million, marking a 41% increase year-over-year, although earnings per share fell short of expectations at $0.04 compared to the forecasted $0.08. Wolfe Research maintained its Peerperform rating on Figma, noting that the company’s operating income was $11.5 million, with a 4.6% operating margin, figures that were consistent with preliminary reports. Morgan Stanley lowered its price target for Figma to $70, citing margin pressure, but noted that revenue growth remained strong. Goldman Sachs reiterated its Neutral rating and a $49 price target, following Figma’s second-quarter results, which aligned with estimates but did not meet investor expectations for upward guidance revisions. BofA Securities also reduced its price target to $69 due to valuation concerns, highlighting that Figma shares trade at a premium compared to the large-cap software sector. These developments come as Figma navigates its first earnings report as a public company, with analysts closely monitoring its financial performance and market valuation.
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