Analyst Elizabeth Porter from Morgan Stanley maintained a Hold rating on Figma, Inc. Class A and keeping the price target at $70.00.
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Elizabeth Porter’s rating is based on a combination of factors, primarily revolving around Figma, Inc.’s recent financial performance and market expectations. The company’s stock was initially priced for perfection, with high expectations leading into the Q2 results. However, the Q3 revenue guidance fell short of these elevated expectations, causing a significant decline in share value.
Porter highlights that while there are potential growth drivers, such as pricing and new product contributions, the immediate impact is expected to be limited. The stock is trading at a premium compared to its peers, and there is a need for more visibility and confidence in the company’s growth durability and strategic initiatives. Therefore, she maintains a Hold rating, awaiting further clarity on how these factors will play out in the future.
In another report released on September 5, Wells Fargo also maintained a Hold rating on the stock with a $70.00 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.