RBC Cuts Figma Price Target to $31, Peers Also Trim Targets on 40% Q4 Growth
RBC Capital cut Figma’s price target to $31 from $38 and maintained a Sector Perform rating, citing its entrenched platform, strong margins and growing AI-native offerings. Morgan Stanley and Goldman Sachs also reduced their targets to $44 and $35, respectively, after Figma reported Q4 revenue of $303.8M, up 40% y/y.
1. Analyst Price Target Cuts
On February 19, RBC Capital lowered its price target on Figma to $31 from $38 and kept a Sector Perform rating, highlighting its entrenched design platform, strong gross margins and expanding AI-native features. That same day, Morgan Stanley trimmed its target to $44 from $48 with an Equal Weight rating, and Goldman Sachs cut to $35 from $40, both citing competitive and margin pressures.
2. Q4 Financial Performance
Figma delivered Q4 revenue of $303.8 million versus consensus of $293.2 million, marking 40% year-over-year growth and its best quarter for net new revenue. The company recorded a 13% operating cash flow margin and noted an uptick in Net Dollar Retention, underscoring a balance of financial discipline and investment.
3. AI and Product Developments
Figma’s AI-driven offerings, including Dev Mode and Figma Make, have driven monetization, with Make’s weekly active users rising 70% quarter-over-quarter. Management emphasized continued AI investments alongside a strong platform moat as key drivers for sustained growth and deeper customer engagement.