Figma (FIG) is a cloud-based design tool mainly used for UI (User Interface) and UX (User Experience) design. The company held a blockbuster IPO on July 31, 2025, with shares skyrocketing more than 333% to $142.92 from the offering price of $33. However, as of today, the stock has declined 42.3% from its market debut.
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Yesterday, FIG stock fell 8.9% after several Wall Street analysts initiated coverage of the company, mostly with “Hold” ratings. While analysts acknowledge Figma’s strong position as a leader in UI/UX design software, they remain cautious about limited near-term upside given the current share price of around $70.
Here’s What Analysts Are Saying About Figma
Morgan Stanley analyst Elizabeth Porter assigned a Hold rating to FIG with a price target of $80, implying 13.6% upside. She noted that Figma’s design platform enables seamless collaboration throughout the entire design process, supporting steady growth. However, she views the current valuation as offering a balanced risk/reward profile.
Similarly, Wells Fargo analyst Michael Turrin initiated coverage with a Hold rating and a price target of $82 (16.5% upside). He highlighted Figma’s strong growth trajectory and its “potential to attract a cult-like following,” but cautioned that much of this optimism already appears priced into the stock.
Meanwhile, Bank of America Securities analyst Bradley Sills also issued a Hold rating, setting a price target of $85 (20.7% upside). Sills recognized Figma as the clear leader in the UI/UX design space, well positioned to capture more share in the $36 billion digital design industry thanks to its “formidable competitive advantages.” Nevertheless, he pointed out that Figma trades at a significant premium to other large software companies, suggesting most of its potential gains are already factored into the stock.
In contrast, William Blair analyst Arjun Bhatia was the only one to assign a Buy rating for FIG. He argued that Figma has established itself as the dominant design platform with no close rivals, effectively setting the industry standard. According to his firm’s discounted cash flow analysis, Figma’s fair value stands at $96, implying an upside potential of about 36%.
Is Figma Stock a Buy?
On TipRanks, FIG stock has a Moderate Buy consensus rating based on two Buys and five Hold ratings. The average Figma price target of $75 implies 6.5% upside potential from current levels.
