Morgan Stanley Reduces PT on Figma (FIG) Stock

Figma, Inc. (NYSE:FIG) is one of the Best Reddit Stocks to Invest in Now. On September 4, Morgan Stanley reduced the price target on the company’s stock to $70 from $80, while keeping an “Equal Weight” rating, as reported by The Fly. As per the analyst, while the revenue growth sustained above 40% YoY in Q2 2025, the Q3 2025 and FY 2025 guidance for YoY growth likely fell short of buy-side expectations. Notably, Figma, Inc. (NYSE:FIG) expects Q3 2025 revenue of between $263.0 million – $265.0 million, demonstrating 33% YoY growth at the midpoint. Also, it expects FY 2025 revenue of between $1.021 billion – $1.025 billion, reflecting 37% YoY growth at the midpoint of the range.

However, Morgan Stanley sees Figma, Inc. (NYSE:FIG) as a market-leading platform in design and believes that it is uniquely positioned for GenAI. That being said, the valuation limits the near-term risk/reward, opines the firm. In Q2 2025, Figma, Inc. (NYSE:FIG) delivered best-in-class revenue growth and positive operating margin as it continued investing in AI. The company’s stock has a consensus one-year price target of $71.12.

While we acknowledge the potential of FIG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.