J.P. Morgan analyst Mark Murphy maintained a Hold rating on Figma, Inc. Class A yesterday and set a price target of $65.00.
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Mark Murphy has given his Hold rating due to a combination of factors that reflect both positive performance and potential challenges for Figma, Inc. Class A. The company has shown strong revenue growth, exceeding initial forecasts and providing optimistic guidance for future quarters. However, there is a noted deceleration in revenue growth as Figma adapts to new pricing and packaging strategies, which may take time to fully integrate and impact financial results.
Despite the promising outlook, there are mixed signals from customer metrics, such as a sequential downtick in net revenue retention (NRR) and a slower increase in paid customers compared to the previous year. These factors suggest that while Figma is on a healthy growth trajectory, there are uncertainties related to customer adoption and the impact of recent strategic changes. Therefore, the Hold rating reflects a balanced view of Figma’s current performance and future potential, acknowledging both its strengths and areas that require careful monitoring.
In another report released today, Wells Fargo also maintained a Hold rating on the stock with a $70.00 price target.