Citi Initiates Coverage on Figma With Buy Rating, Cites Massive $25 Billion Market Opportunity

Key Stats for Figma Stock

• Price change for Figma stock: 4%
• $FIG Share Price as of Jun. 17: $19
• 52-Week High: $143
• $FIG Stock Price Target: $37

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What Happened?

Figma (FIG) stock jumped after Citi initiated coverage with a buy rating and a $36 price target.

Analyst Tyler Radke made the bull case simple: Figma has a $25 billion total addressable market and is still in the early stages of capturing it.

The call isn’t just about Figma’s existing design business. Radke specifically pointed to AI as a growth driver.

His proprietary checks with hyperscalers and large financial services firms showed strong seat upgrades and credit pack purchases — which he sees as positive signals for Figma’s AI monetization strategy.

Citi also flagged monetization of the Model Context Protocol server as a future catalyst. Figma’s MCP lets AI agents read and write directly to Figma files. In Q1, MCP weekly active users grew 5x quarter over quarter.

Among customers spending more than $100,000 annually, those using MCP saw full seats grow roughly 70% faster than those not using it.

Figma stock had already been building momentum before the Citi initiation.

• Q1 revenue grew 46% year-over-year — accelerating for the second consecutive quarter.
• Net dollar retention hit 139%, the highest level in over two years.
• The company began monetizing AI credits on March 18, and as of the end of April, over 75% of enterprise users who had previously exceeded their credit limits continued to use credits under the new system.

FIG Stock Revenue, EBIT and Free Cash Flow Estimates in Billion USD (TIKR)

The company also raised its full-year revenue guidance by $55 million and boosted its non-GAAP operating income outlook by $25 million.

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What the Market Is Telling Us About Figma Stock

Figma stock is being rewarded for executing well, while a lot of the design software space faces AI disruption concerns.

Citi’s view is that Figma is actually benefiting from the AI wave — not threatened by it. More AI-generated code means more design work, not less, and Figma’s platform is where that work happens.

FIG Stock Valuation Model (TIKR)

One near-term risk Radke flagged is a share lock-up expiry in mid-August, which could create selling pressure.

But the fundamentals heading into that period look strong.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!