Figma (NYSE:FIG) was reinstated with a ‘Buy’ rating and a $30 price objective by Bank of America, with the firm arguing that artificial intelligence is likely to strengthen the company's competitive position rather than undermine it.
Shares of Figma traded higher on the news, adding more than 7% at about $23 on Tuesday afternoon.
Bank of America analysts wrote that concerns over generative AI disrupting the design software market have weighed on the stock, but they believe AI is more likely to act as a tailwind by expanding demand for collaborative workflows.
The firm also pointed to progress in Figma's transition toward a hybrid consumption- and seat-based pricing model as a potential driver of additional monetization.
The analysts wrote that while AI can speed up content creation, it also increases the need for platforms that enable teams to collaborate, coordinate and move AI-generated work into production environments. They expect this trend to reinforce Figma's strategic role as more individuals and organizations adopt AI tools.
Bank of America also cited early signs that AI-related products are contributing to growth. According to the firm, 75% of enterprise customers purchased additional AI credits after exceeding their initial allocations during the first quarter of fiscal 2026, which the analysts wrote reflects strong engagement and willingness to pay for AI capabilities.
The firm noted that enterprise 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%.
Bank of America said it expects Figma's revenue to grow 36% in fiscal 2026 and 23% in fiscal 2027. The firm values the company at 8 times estimated calendar 2027 enterprise value-to-sales, citing what it views as a premium growth profile despite expected near-term margin pressure from AI investments.
The analysts wrote that key risks to their outlook include slower-than-expected adoption, increased competitive pressure and weaker monetization of AI offerings.