Investment analysts issued a "Buy" rating upgrade for Figma, Inc. The move follows a significant drop in the company's stock price since its IPO. Analysts believe the recent decline has made Figma's valuation more reasonable.
Analysts cite strong fundamentals supporting the upgrade. Figma boasts 38% year-over-year revenue growth. Furthermore, the company maintains a high net dollar retention rate of 131%.
The successful integration of AI into its product suite drives expectations for future performance. This AI adoption is projected to increase customer engagement and secure market share gains.
The assessment acknowledges risks, including premium valuation and market volatility. Despite these factors, analysts conclude that Figma's growth potential presents an attractive opportunity for investors.