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Investing.com - RBC Capital initiated coverage on Figma Inc (NYSE:FIG) with a Sector Perform rating and a $75.00 price target on Monday, close to the current trading price of $77.30. According to InvestingPro data, Figma commands a substantial market capitalization of $38.71 billion, despite not being profitable over the last twelve months.
The research firm identified Figma as having "a compelling AI story" despite potential investor concerns that AI might simplify application design and development in ways that could compete with Figma’s offerings.
RBC Capital believes AI could actually serve as a "real tailwind" for Figma, noting the company’s aggressive investments in embedding AI throughout its platform.
These AI investments include products such as Figma Make (an AI-powered prototyping tool), FigJam AI, and Dev Mode MCP server, though RBC Capital acknowledges these investments "will likely pressure gross margins in the near term."
The firm also suggested Figma could play an important role in designing and developing new AI applications as artificial intelligence continues to "permeate all aspects of work and life."
In other recent news, Figma has priced its initial public offering (IPO) at $33 per share, with trading on the New York Stock Exchange set to begin soon. The IPO includes approximately 37 million shares of Class A common stock, comprising 12.47 million shares offered by Figma and 24.46 million shares from existing stockholders. Piper Sandler has initiated coverage on Figma with an Overweight rating, highlighting the company’s differentiated platform and broad customer base as reasons for its positive outlook. The firm has set a price target of $85.00 for Figma. DA Davidson analysts have also expressed optimism about Figma’s public listing, describing it as an "ideal IPO candidate." The analysts noted a potential market capitalization between $14.6 billion and $16.4 billion. These developments indicate significant interest and confidence from the investment community in Figma’s market debut.
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