Figmashares are rising moderately in premarket trading after Citigroup initiated coverage with a Buy rating, saying demand tied to AI could help fuel the design software company’s next phase of growth, according to the note provided by Bloomberg.
Citi set a $36 price target on the stock and said Figma is well-positioned to offset AI disruption concerns through its own AI-driven consumption growth.
"Our proprietary customer and go-to-market (GTM) checks with hyperscalers and large financial services (FS) firms suggest strong seat upgrades & credit pack utilization, which offer positive reads on AI-monetization strategy," analyst Tyler Radke commented.
The company has been moving to roll out AI-native features in recent months, including developer-focused tools and in-house Figma agent aimed at making Figma a more central operating layer between product teams, engineers and AI systems.
Citi also pointed to upcoming product launches and potential monetization tied to Figma’s Model Context Protocol server which is an emerging framework that could allow AI systems to interact more directly with design environments.
Figma’s most recent earnings posted stronger-than-expected revenue growth while management raised its full-year guidance, saying that AI-related products were seeing encouraging adoption.
Still, the company that went public in 2025 has faced intense pressure with stock tumbling more than 50% this year-to-date over fears that automated AI code-generation tools and design alternatives from competitors like Anthropic might squeeze the need for seat-based design software.