RBC Capital Initiates Figma Coverage with $75 Price Target

RBC Capital initiated coverage on Figma (FIG) with a "Sector Perform" rating and a $75 price target. This follows a recent coverage from Piper Sandler, which initiated coverage with an "Overweight" rating and a $85 price target. Figma is a design software company that enables users to quickly launch new products on its browser-based platform. The company derives revenue from subscription sales for access to its platform.

RBC Capital Markets has initiated coverage on Figma Inc. (NYSE: FIG) with a "Sector Perform" rating and a price target of $75.00. This follows recent coverage from Piper Sandler, which initiated coverage with an "Overweight" rating and a $85 price target. Figma is a design software company that enables users to quickly launch new products on its browser-based platform. The company derives revenue from subscription sales for access to its platform.

RBC Capital Markets highlighted Figma's strong financial profile and its compelling AI story. The company has 13 million monthly active users (MAUs) and over 450,000 paid customers, servicing 95% of the Fortune 500 and 78% of the Global 2000. RBC noted Figma's aggressive investments in embedding AI throughout its platform, including products like Figma Make, an AI-powered prototyping tool, and FigJam AI [2].

The analyst noted that Figma's revenue has crossed the $1 billion mark and that its core product is already considered an industry standard. Despite these strengths, RBC Capital Markets argued that the company's valuation looks full at 32 times 2026 estimated revenue, which has been a consistent source of caution across recent initiations [3].

RBC Capital Markets' "Sector Perform" rating reflects a balanced view of Figma's potential, acknowledging its competitive position and growth prospects, while also considering the high valuation and potential challenges posed by intense competition and AI-driven innovation.

References:
[1] https://www.ainvest.com/news/goldman-sachs-initiates-figma-coverage-neutral-pt-48-2508/
[2] https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/08/47317712/figma-is-a-compelling-ai-story-already-crossing-1-billion-in-revenue
[3] https://www.investing.com/news/stock-market-news/wall-street-cautious-on-figma-valuation-as-coverage-begins-4209406