Figma Stock Gains Analyst Support on AI Outlook

Figma stock drew renewed analyst support after Bank of America reinstated coverage with a Buy rating on July 7, 2026, arguing that generative AI will expand the pool of product builders, boost demand for collaboration software, and open new monetization channels.

Analyst Reinstatements and Market Context

Figma Inc., a collaborative design and product-development software provider listed on the New York Stock Exchange under the ticker FIG, received a Buy rating and a $30 price target from Bank of America Securities. The target is based on an 8x calendar-year 2027 enterprise-value-to-sales (EV/Sales) multiple. On the same day, the bank issued a contrasting call on Adobe, reinstating coverage with an Underperform rating and a $190 price objective.

This Bank of America rating joined recent sell-side activity. Citigroup initiated coverage on July 1, 2026, with a Buy rating and a $36 price target, while Goldman Sachs reportedly holds a Buy rating with a target near $30. A consensus snapshot showed five Buy, ten Hold, and one Sell ratings, with an average price target of $32.67 and an overall Hold rating.

Figma shares have fallen roughly 85% from their 52-week high and declined about 29% in June amid investor concerns that generative AI could reduce demand for design tools. Analysts said favorable calls have helped stabilize the stock and support a recovery in July.

AI Adoption and Financial Outlook

Bank of America framed generative AI as a growth catalyst for Figma, suggesting it will expand the number of digital product creators and increase workflow complexity, reinforcing demand for a centralized collaboration platform. The bank described fears that AI would disrupt Figma’s business as overdone.

Early AI adoption in Figma’s first-quarter 2026 results supports this view. About 75% of enterprise customers who exceeded their AI credit limits purchased additional credits, and more than 95% remained active on the platform. Figma’s hybrid seat-based and usage-based pricing model allows the company to monetize incremental AI consumption.

The bank highlighted strong enterprise engagement: customers generating more than $100,000 in annual recurring revenue (ARR) grew 48% year-over-year, net dollar retention stood at 139%, and paid-user counts rose 54%. Bank of America projects revenue growth of 35.6% in 2026 and 23% in 2027, compared with peer averages of 19.3% and 15.7%. It expects the cohort of customers above the $100,000 ARR threshold to grow about 26.2% in 2026 and at least 22% annually through 2028, describing this as a superior growth profile.

The bank’s operating model anticipates margin expansion despite near-term AI spending. Operating margin is forecast to rise from 9.2% in fiscal 2026 to 13.8% by fiscal 2028, while free-cash-flow margin is projected to increase from 11.3% to 16.2% over the same period. Bank of America expects AI investments to pressure profitability in the near term but still foresees margin growth through 2028.

On valuation, Figma trades at about 5x calendar-year 2027 EV/Sales, below a peer average near 5.9x. The bank suggested that Figma’s pricing mix and AI revenue upside could support multiple expansion, underpinning the reinstated price target.

Bank of America’s move adds another major sell-side voice to the pro-AI, pro-growth camp, reinforcing a narrative that AI adoption could support a re-rating if monetization continues.