Piper Sandler: Figma (FIG.US) possesses multiple growth engines, first-ever "neutral" rating.

Piper Sandler released a research report, initiating coverage on Figma (FIG.US) for the first time with a "neutral" rating and a target price of $85. Analyst Brent Bracelin wrote in the client report, "In just ten years, Figma's preliminary annualized recurring revenue in the second quarter has nearly reached the $1 billion mark. Despite strong growth momentum, the company is still in the early stages of building an end-to-end platform dedicated to helping businesses of all sizes transform creativity into digital products. With the industry dividends brought by AI solutions, it is expected that by 2030, its annualized revenue could exceed $3 billion, with a free cash flow profit margin expanding to over 30%." Bracelin added, "Considering the possibility of continued volatility in newly listed stocks in the short term (for example, after Figma surged 250% on its first day, it fell back 21% within a week, down 49% from its high), we recommend large-cap growth stock investors to seize the opportunity to buy on dips." It is understood that Figma, which completed its IPO at the end of last month, saw its market value surpass $50 billion at one point due to market frenzy. The analyst emphasized that Figma, which competes with companies like Adobe (ADBE.US), has multiple growth engines, including a new pricing strategy implemented in March (raising prices for all seats by 20%-33%), the potential for free to paid conversion from 25 million monthly visitors and 13 million active users, new product cross-selling, and global market expansion. Bracelin concluded by pointing out the significant opportunities brought by AI that are just beginning to emerge: "While ambitious new products may temporarily squeeze profit margins, this will establish a more solid foundation for Figma's long-term growth."