William Blair analyst Arjun Bhatia has reiterated their bullish stance on FIG stock, giving a Buy rating on August 20.
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Arjun Bhatia has given his Buy rating due to a combination of factors including Figma’s strong financial performance and future growth potential. The company reported a 41% increase in revenue for the second quarter, aligning with its preliminary estimates, and projected a growth rate of 32%-33% for the third quarter. Additionally, Figma achieved a 24% free cash flow margin and a 129% net revenue retention rate for its high-value customers.
Figma’s introduction of new products, such as Figma Make, an AI-driven design tool, has received positive initial feedback, indicating promising future monetization opportunities. While the company is taking a cautious approach in its revenue guidance by not including potential earnings from new offerings, Bhatia sees Figma as a leader in its field with multiple growth drivers yet to be fully realized. The expected expansion into new customer segments and the potential for increased product upgrades and monetization are key factors supporting the Buy rating.
In another report released on August 20, Piper Sandler also initiated coverage with a Buy rating on the stock with a $85.00 price target.
Based on the recent corporate insider activity of 32 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of FIG in relation to earlier this year.