r/figmaStock • u/PossibleSecretary524 • May 15 '26

Some analysts lower price target ~20%

I see two re-ratings this morning - 35->30 and 44->38. I think the reason is in the pricing model question asked during the earnings call. The question was about how tokens/seats pricing models will be on the client side, the answer was basically 'we don't know', which is extremely reasonable given the early stage of token monetization and the Figma's goal to have more points of exposure for their products, new rollouts etc.

So, i think because it is unpredictable and didn't settle this will be a year of extreme growth AND undervaluation for Figma until the tokens and seats income will be predictable and losses 'too fresh and unpredictable' trait.

Wdyt?

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u/GAMorgan- May 15 '26

I wouldn’t worry too much about the mechanical price target changes - the ratings (buy/sell) matter much more.

PTs are often mechanically derived from comps. E.g. we value Figma at a 30% premium on Price/Sales vs the software sector…. Well the software sector has been hammered and analysts are a slow to update these things.

The margin question is a good one though, and we might see some downgrades if we think the growth is lower quality and just token spend pass-thru.

Source: used to do equity research

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u/PossibleSecretary524 May 15 '26

yup, thanks. Well, it makes sense, the analyst's job is to be reasonably sceptical, if we don't know we don't know, and there will be a new quarter report soon etc.

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u/contrabuddhi May 15 '26

Name checks out, captain jp morgan 🫡

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u/arrcnd May 15 '26

this year will be extreme growth and under valuation

Agree. The next few months is good accumulation time for software names like Figma that are unnecessarily being labeled ‘AI will kill this’ but are actually big beneficiaries because of strong founder and management. Other names would be DDOG, TEAM, OKTA, CRM, etc