Goldman Sachs initiates Figma stock coverage with Neutral rating

Investing.com - Goldman Sachs initiated coverage on Figma Inc (NYSE:FIG) with a Neutral rating and a $48.00 price target on Monday. According to InvestingPro data, the company currently trades at $77.30, with analysts setting a high target of $85.00.

The investment bank views Figma as a "generational design tool" that is evolving into an end-to-end product development platform, noting its real-time, collaborative web-based environment unifies design and development workflows.

Goldman Sachs highlighted Figma’s strong position amid accelerating software creation, with IDC projecting over 1 billion new applications by 2028, and pointed out that non-designers already represent two-thirds of Figma’s monthly active users.

The firm identified multiple growth opportunities for Figma, including expanding its user base among non-designers, increasing multi-product adoption, and developing AI capabilities through Figma Make, which could introduce consumption-based revenue streams.

Despite these positive factors, Goldman Sachs maintained a measured view due to "limited visibility into momentum and revenue contribution from near-term growth drivers," considering the valuation "relatively full at current levels," while acknowledging Figma’s potential to eventually scale into a business generating over $10 billion in revenue.

In other recent news, Figma has priced its initial public offering at $33 per share, with trading set to commence on the New York Stock Exchange. The offering includes approximately 37 million shares, with Figma itself providing 12.47 million shares and existing stockholders selling 24.46 million shares. Analysts from DA Davidson have shown optimism regarding Figma’s public listing, viewing it as an "ideal IPO candidate" that could influence future software IPOs. Meanwhile, Piper Sandler has initiated coverage on Figma with an Overweight rating, citing the company’s growth potential and extensive global reach to over 450,000 customers. RBC Capital has also started coverage, assigning a Sector Perform rating and highlighting Figma’s potential in AI development. JPMorgan has initiated coverage with a Neutral rating, setting a price target of $65, noting Figma’s role as a core system in design workflows. These developments indicate a range of expectations from financial firms as Figma enters the public market.

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