Figma’s Hold Rating: Stable Growth Amid Valuation Concerns

Bank of America Securities analyst Bradley Sills reiterated a Hold rating on Figma, Inc. Class A and set a price target of $69.00.

Sills maintained the Hold rating based on Figma's current market position and financial performance. Despite its leadership in the UI/UX design industry, Figma did not show significant upside in Q2, aligning with anticipated results. Revenue growth was steady at 9% quarter-over-quarter, but growth in customers with over $10,000 ARR was lower than previous levels.

Figma's revenue growth decelerated from 46% in Q1 to 41% in Q2, with AI-enabled features yet to be monetized. The outlook for Q3 does not include AI monetization, but potential exists for positive impact in FY26. Despite its strong position in digital design, Figma's shares trade at a premium compared to large-cap software groups, suggesting limited near-term upside.

In a report released on August 28, RBC Capital also maintained a Hold rating with a $75.00 price target. Recent corporate insider activity shows negative sentiment, with 32 insiders selling shares, indicating increased selling activity compared to earlier this year.