BofA Securities initiated coverage on Figma Inc. (NYSE:FIG) with a Neutral rating and an $85 price target, saying the design software company was well positioned in the $36 billion digital design industry but already fairly valued.
The brokerage highlighted Figma’s competitive strengths, including its large user base of 13 million monthly active users and 450,000 paying customers, collaborative tools, and broad product offering spanning whiteboarding, development, web, social media, and vector design. It also emphasized the company’s advanced generative AI capabilities as a differentiator.
While BofA said Figma was well placed to continue gaining share in the UI/UX design market, it stopped short of a Buy rating, suggesting current valuation already reflected much of its growth potential.
