Figma Inc. shares declined 1.75% to $21.88 on Friday as traders weigh a recent bullish analyst view against a softer tape for growth software. The stock is currently battling resistance at the 100-day simple moving average (SMA) of $22.05, a critical level that often determines if rebounds can turn into sustained breakouts. Despite the near-term weakness, Bank of America has reinstated coverage with a Buy rating and a $30 price target, arguing that artificial intelligence is accelerating demand rather than disrupting the business.

Valuation and Growth Projections

Bank of America values Figma at about 8 times estimated 2027 enterprise value-to-sales, significantly above the peer average of roughly 5.9 times. The firm projects revenue growth of 35.6% in 2026 and 23% in 2027, compared to peer averages of 19.3% and 15.7%, respectively. The brokerage expects operating margin expansion from 9.2% in 2026 to 13.8% by 2028, alongside improving free cash flow margins.

AI Driving Adoption and Monetization

The firm believes AI is increasing the number of people creating digital products while making workflows more complex, which boosts demand for a centralized platform. Figma's hybrid pricing model, combining seat-based subscriptions with usage-based fees, positions it to capture this value. In the first quarter of 2026, 75% of enterprise customers that exceeded their AI credit limits purchased additional credits, while net dollar retention reached 139%. Enterprise customers generating more than $100,000 in annual recurring revenue increased 48% year over year.

Technical Levels and Momentum

From a longer-term perspective, the stock remains in repair mode after a steep 12-month decline of 81.15%, trading about 30.5% below the 200-day SMA of $31.44. A "death cross" formed in January, where the 50-day SMA fell below the 200-day SMA, continues to pressure the broader trend. However, momentum indicators are improving; the MACD is above its signal line with a positive histogram, suggesting easing downside pressure. Key resistance is seen at $25.50, while support sits at $18.

Wells Fargo analyst Michael Turrin has maintained an Overweight rating on Figma (NYSE: FIG) while lowering the price target to $36 from $42. The adjustment reflects a revised outlook on the stock's valuation and near-term performance potential.

The revised target comes as the firm assesses the company's position within the sector. Previously, RBC Capital analyst Rishi Jaluria had maintained a Sector Perform rating on Figma with a $22 price target, while Piper Sandler analyst Billy Fitzsimmons reiterated an Overweight rating with a $30 target, indicating a divergence in analyst sentiment regarding the stock's trajectory.

Analyst Ratings and Price Targets

The following table summarizes the recent analyst actions on Figma:

Wells Fargo's reduction to $36 suggests a more cautious stance compared to the previous $42 target, yet remains above the $22 target set by RBC Capital. The Overweight rating implies that the stock is expected to outperform the broader sector in the current market environment.