Figma shares rose 5% in premarket trading after Bank of America reinstated coverage with a Buy rating and $30 price target. Analyst Tal Liani said AI is more likely a tailwind than a headwind for the design software company.
Back
Figma rebounds 5% as BofA issues Buy rating on AI tailwinds
Figma shares rose 5% in premarket trading Tuesday after Bank of America reinstated coverage with a Buy rating and $30 price target.
"The stock is down 85% from its 52-week high as concerns that generative AI could disrupt the design layer and compress its value have weighed on the stock," analyst Tal Liani wrote in a note. "We take a more constructive view, and believe AI is more likely a tailwind, not a headwind."
The $30 target implies about 42% upside from Monday's close of $21.08. Liani pointed to encouraging traction in Figma's transition toward a hybrid consumption and seat-based pricing model, noting that 75% of enterprise customers purchased additional AI credits after exceeding initial usage limits in the first quarter. Customers generating more than $100,000 in annual recurring revenue increased 48% year over year, while net dollar retention stood at 139% and paid-user growth reached 54%.
The upgrade comes as Figma works to recover from a 29% decline in June, when concerns about generative AI's impact on the design software market intensified. The stock remains roughly 85% below its 52-week high, reflecting persistent investor skepticism about the company's ability to fend off AI-driven disruption.
The BofA initiation is the most bullish call among recent analyst moves on Figma. Wells Fargo's Michael Turrin maintained an Overweight rating last month while cutting his price target to $36 from $42 after the company's Config '26 conference. RBC Capital's Rishi Jaluria lowered his target to $22 from $28 with a Sector Perform rating, citing early-stage product offerings that make it difficult to estimate financial impact.
Figma operates a browser-based platform for UI and UX design, prototyping and design systems. The company went public in 2025 after Adobe's $20 billion acquisition attempt was blocked by regulators.
The BofA upgrade suggests at least one Wall Street firm views the selloff as overdone. Investors will watch Figma's second-quarter earnings for further evidence that its AI monetization strategy is gaining traction.
This article is for informational purposes only and does not constitute investment advice.
[1] Why Figma Stock Lost 29% in June[2] Figma in focus as BofA puts Buy rating on stock (FIG:NYSE) - Seeking Alpha[3] Figma isn’t losing to AI, it’s winning because of it: Analyst[4] Figma Inc. (FIG) Inspires Confidence Following Its User Conference and Investor Session[5] I managed through four tech disruptions at HBO. ‘AI Minimalism’ is the secret to survival in the fifth disruption
© 2026 Edgen Powered by