Figma’s Stock (NYSE:FIG) Gains Wall Street Coverage – A Look At Analysts’ Price Target

Figma (FIG) is navigating a complex market landscape following its recent IPO, with Goldman Sachs initiating coverage at a Neutral rating and a price target of $48. This target sits significantly below the current trading price of $76.29 (pre-market), raising questions about the company's near-term valuation.

Figma's IPO on July 31, 2025, was initially met with great enthusiasm, pricing shares at $33 and quickly surging to $142.92, representing a remarkable, if unsustainable increase. The IPO raised $1.2 billion, valuing the company near $19.3 billion. However, this initial surge proved unsustainable, with the stock subsequently declining to $76.88 in this morning's pre-market, driven by profit-taking and a valuation reassessment.

Goldman Sachs' Neutral rating reflects a measured perspective on Figma's prospects. While acknowledging Figma as a “generational” design tool with the potential to evolve into a comprehensive product development platform, the firm cites limited visibility into the company's near-term momentum and revenue contribution, particularly from its newer product offerings. This cautious stance underscores concerns about whether Figma can justify its current valuation given the nascent stage of these new ventures.

A key factor influencing market sentiment towards Figma is its elevated valuation metrics. The company's price-to-sales (P/S) ratio currently stands at 43.2x, substantially higher than the industry average of 5x. This premium suggests that markets anticipate exceptional future growth from Figma.

Elsewhere, there have been a range of other analyst calls on Figma's stock today, with a real mix of price targets.

The broader IPO market has experienced a resurgence, with companies like Figma and Circle witnessing significant first-day gains. This trend has prompted scrutiny of Wall Street banks' IPO pricing strategies, with some arguing that conservative pricing may have deprived issuers of substantial unrealized proceeds.

Despite these challenges, Figma's strengths remain considerable. Co-founder and CEO Dylan Field, whose personal stake is valued at over $6 billion post-IPO, leads the company. Figma boasts a substantial user base of 13 million monthly active users, including 95% of Fortune 500 companies.

Figma's stock is trading off the back of initial IPO euphoria, and it may take a little while to settle down after a period of price discovery. Wall St analysts shuffle targets as fundamentals change, but after the early run up, valuation concerns, and competitive pressures are having a role to play.