Figma stock gets $36.88 target with 99% upside despite rough debut

24/7 Wall St. set a $36.88 price target on Figma Inc., giving the design software stock 99% upside from its current $18.51 level.

The stock offers a favorable risk-reward despite a brutal first year as a public company, according to the 24/7 Wall St. price target model, which assigns a buy recommendation with 60% confidence.

Figma shares have fallen 84% from the $115.50 peak reached in July 2025 and sit 50.5% lower year to date. The stock recently touched a 52-week low of $16.60, down from an all-time high of $142.92. Revenue tells a different story: Q1 2026 came in at $303.78 million, up 46.1% from a year earlier. The company expects to reach profitability in 2026, though its operating margin remains negative at 41.2%.

The $36.88 target blends the Street consensus of 3 buy ratings and 9 holds with proprietary factor adjustments. The model applies a downward adjustment for insider selling — Chief Executive Officer Dylan Field sold $4.36 million in stock under a 10b5-1 plan, while the chief technology officer, chief financial officer and chief revenue officer also trimmed positions in late May and early June. AI competitive risk and an EV/EBITDA reading of 441 times also temper the outlook. On the positive side, a sentiment composite score of 62.95 reads bullish, and the price-to-sales ratio of 8.44 sits well below prior peaks.

The bull case hinges on sustained 40%-plus revenue growth and a clean profitable quarter that could trigger multiple expansion. If Figma clears the 200-day moving average of $34.96, a re-rating toward $50 becomes plausible. The bear case centers on valuation: EV/Revenue of 7.06 remains rich for a company with a 41.2% operating loss, and RBC Capital holds a $28 target with a neutral rating. Stifel and Piper Sandler have trimmed their targets, citing AI uncertainty.

The 24/7 Wall St. model projects Figma reaching $44 by 2027 and $52 by 2028, assuming 30%-plus revenue growth and durable profitability. The risk-reward looks favorable, but the path depends on whether AI investment widens margins or squeezes pricing against competition from Adobe and AI-native tools. Investors will watch the Q2 2026 earnings report for signs of revenue deceleration below 35% or a guidance revision.

This article is for informational purposes only and does not constitute investment advice.