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Investing.com - BofA Securities lowered its price target on Figma Inc (NYSE:FIG) to $69.00 from $85.00 on Thursday, while maintaining a Neutral rating on the digital design software company. The stock currently trades at $68.13, near its 52-week low of $64.55, after declining 41% over the past six months.
The investment firm cited valuation concerns as the primary reason for the reduced target, noting that Figma shares currently trade at a significant premium to the large-cap software group at 26 times calendar year 2026 revenue. According to InvestingPro analysis, the company appears overvalued based on its Fair Value calculations, with analyst price targets ranging from $48 to $96.
BofA Securities acknowledged Figma’s strong market position in the $36 billion digital design industry, highlighting several competitive advantages including its large user base of 13 million monthly active users and 450,000 paid customers.
The firm also recognized Figma’s collaborative features, comprehensive offering spanning whiteboarding, development, website, social media and vector capabilities, and its powerful generative AI features.
Despite these strengths, BofA Securities believes near-term upside for Figma stock is "largely priced in" and adjusted its estimates downward to reflect decelerating growth expectations.
In other recent news, Figma Inc . reported its financial results for the second quarter of 2025, showing a revenue of $250 million, which marks a 41% increase compared to the previous year. The company’s earnings per share (EPS) came in at $0.04, falling short of the expected $0.08. Despite the EPS miss, the revenue slightly exceeded projections. Wolfe Research has reiterated its Peerperform rating on Figma following these results. The company also reported operating income of $11.5 million, achieving an operating margin of 4.6%. These financial figures were in line with the preliminary results Figma had previously shared. Such developments are crucial for investors as they assess the company’s financial health and future prospects.
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