Piper Sandler and Stifel Update Price Targets on Figma (FIG) Following Revenue Growth and AI Product Adoption

Figma Inc. (NYSE:FIG) ranks among the best short squeeze stocks to invest in. On May 15, Piper Sandler reduced its price objective for Figma Inc. (NYSE:FIG) to $30 from $35 while keeping an Overweight rating on the company’s shares. The firm cited Figma’s first-quarter results, which showed 46% year-over-year revenue growth and a 5.5% revenue beat.

Figma’s second-quarter revenue growth projection of 40% year-over-year came in 9 percentage points higher than expected. Management also increased the fiscal 2026 revenue growth midpoint to 35% year-over-year, up from around 30% previously.

The same day, Stifel cut its price objective for Figma Inc. (NYSE:FIG) from $30 to $25 while keeping a Hold rating on the company, citing a wait-and-see approach regarding Figma’s AI products. Figma Inc. (NYSE:FIG) disclosed high uptake and usage for its AI products, adding that the implementation of credit restrictions in mid-March led to early growth gains from both credit usage and seat upgrades.

Figma Inc. (NYSE:FIG) provides a browser-based platform for design, prototyping, and building digital experiences.

While we acknowledge the risk and potential of FIG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FIG and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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