"Morgan Stanley lowered its price target on Figma (NYSE:FIG) to $38 from $44, maintaining an Equal Weight rating following the design software maker's first-quarter results. The price target cut arrives despite a second straight quarter of accelerating revenue growth to 46% year over year, highlighting an unusual tension in the analyst community."
"Morgan Stanley credited the accelerating top line to seat expansion, paid customer conversion, and new credit monetization. The firm noted that while investor debates on competition and gross margins persist, the Q1 2026 results "provide a strong case for Figma's positioning in AI.""
"Piper Sandler's data points were similarly strong: Figma's 6% revenue beat, net dollar retention of 139%, and a Q2 revenue growth guidance midpoint of 40% year over year, a sizable nine points ahead of consensus. Management also raised the FY26 revenue growth midpoint to 35% year over year."
"The valuation reset reflects a structural concern about category disruption rather than any execution miss in the quarter. So-called "vibe coding" platforms and AI-generated user interface tools are increasingly capable of producing design assets without traditional workflows. That has investors questioning whether the design"
Morgan Stanley reduced its Figma price target to $38 from $44 while keeping an Equal Weight rating after first-quarter results. Piper Sandler lowered its target to $30 from $35 while maintaining an Overweight rating. Both firms pointed to accelerating revenue growth, with Morgan Stanley citing seat expansion, paid customer conversion, and new credit monetization. Morgan Stanley noted that Q1 2026 results support Figma’s positioning in AI despite ongoing debates about competition and gross margins. Piper Sandler cited a 6% revenue beat, 139% net dollar retention, and Q2 revenue growth guidance of 40% year over year, plus an increased FY26 growth midpoint of 35%. Figma’s collaborative design platform serves enterprise product teams, with about $9.98 billion market capitalization and roughly 85% gross margins.
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