BofA lifts Figma to Buy; shares rise on AI outlook

Figma Inc. shares climbed more than 6% on Tuesday after Bank of America reinstated coverage of the design software company with a Buy rating and a $30 price target. The firm cited artificial intelligence as a factor that strengthens Figma’s competitive position and creates revenue opportunities.

Bank of America also reinstated coverage of Adobe Inc. with an Underperform rating and a $190 target, saying the two companies are positioned differently as generative AI reshapes the design software market. The brokerage noted both stocks fell sharply in 2026 amid investor concern that AI tools could reduce demand for traditional design applications.

The bank pointed to Figma’s collaborative platform as a key advantage. Unlike legacy design tools that focus on individual creative work, Figma is built for teams working on user interfaces and digital product development. Bank of America wrote enterprises will continue to need a centralized platform to organize, refine and integrate AI-generated work into production-ready products.

Figma has integrated AI features into its pricing through seat-based subscriptions and usage-based AI credits. Bank of America highlighted early signs of traction: in the first quarter of 2026, 75% of enterprise customers that exceeded their AI credit allocations purchased additional credits, more than 95% of those customers remained active on the platform, and Figma ended the quarter with 690,000 paid users, a 53% increase from a year earlier.

The brokerage forecast Figma to outpace the broader software industry, projecting revenue growth of 35.6% in 2026 and 23% in 2027, versus peer averages of 19.3% and 15.7%. It expects operating margins to rise from 9.2% in 2026 to 13.8% by 2028 and projects customers generating more than $100,000 in annual recurring revenue will grow 26.2% in 2026 and by more than 22% annually through 2028. Bank of America noted Figma trades at roughly 7.6 times estimated next-12-month sales compared with Adobe’s roughly 3.2-times multiple.

The brokerage listed potential downsides, including slower-than-expected AI adoption, stronger competition from AI-native design platforms and weaker-than-expected monetization of AI features. “Figma’s collaborative platform gives the company an advantage as AI-generated content becomes more common across software development and product design. This structure allows Figma to introduce a direct pathway to monetize incremental AI usage as adoption scales, without disrupting or cannibalizing its core software-as-a-service model,” Tal Liani wrote.