Citi Values Figma at $36, Forecasts Q2 and 2026 Revenue 7–9 Points Above Consensus
C•Citi initiated coverage of Figma with a Buy/High Risk rating and $36 price target, forecasting Q2 and fiscal 2026 revenue 7 and 9 percentage points above consensus on stronger AI monetization. The firm estimates Figma’s TAM at $25 billion by 2025 (4% penetration), expanding to $50 billion by 2029.
1. Coverage Initiation and Rating
Citi initiated coverage of Figma with a Buy/High Risk rating and set a $36 price target, citing stronger-than-expected AI-driven monetization as its rationale.
2. Revenue Forecasts Above Consensus
The brokerage raised its revenue forecasts for Q2 and fiscal 2026 to 7 and 9 percentage points above Wall Street consensus, respectively, based on ongoing AI-related seat upgrades and increased usage-based revenue.
3. Total Addressable Market and Growth Drivers
Figma’s total addressable market is estimated at roughly $25 billion by 2025 with about 4% penetration, with potential expansion to $50 billion by 2029 through broader product portfolio and AI-enabled application development.
4. Catalysts and Risks Ahead
Key upcoming catalysts include the Config conference, new product launches tied to the Model Context Protocol server initiative, further AI feature rollouts, and a mid-August lock-up expiration that could influence stock supply.
