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Investing.com -- Wall Street analysts initiated coverage of Figma with cautious views on valuation, even as they note design software company’s market leadership and strong financial profile.
Morgan Stanley started Figma at Equal-weight with an $80 price target, calling it an industry leader with durable growth prospects but noting shares trade at more than 35 times sales, leaving “balanced” risk-reward.
The brokerage said Figma’s browser-based platform has redefined digital design workflows through real-time collaboration and expansion into adjacent tools such as FigJam and Dev Mode.
While artificial intelligence could intensify competition, Morgan Stanley said the company is positioned to benefit from the emerging “prompt-to-prototype” market.
JP Morgan also began coverage with a Neutral rating and a $65 target, highlighting Figma’s role as the “system of record” for design but cautioning that investors will debate growth deceleration and gross margin pressure.
The firm said Figma’s new AI product, Figma Make, could prove a future growth driver, though monetization strategies remain early.
Goldman Sachs initiated at Neutral with a $48 target, calling Figma a “generational design tool” that could evolve into a broader product development platform. It noted opportunities to expand among non-design users but said visibility into newer product traction is limited.
RBC started at Sector perform with a $75 price target, citing Figma’s “best-in-class” financials and compelling AI story, but argued valuation looks full at 32 times 2026 estimated revenue.
Figma remains the dominant platform in product design, with growth opportunities from AI and adjacent markets. However, its premium valuation was a consistent source of caution across initiations.