The revised target implies over 25% upside from current levels, suggesting a potential bottom for the SaaS stock after an 80% drop.
Goldman Sachs lowered its price target for Figma (NYSE: FIG) to $30 per share, down from $35, citing the stock’s decline since its July 2023 IPO. The reduction follows an 80% drop from its post-IPO peak of $120, with shares trading in a range since March.
Figma, known for its AI-driven design tools, saw initial IPO success but faced pressure from high valuations and competition concerns. Goldman’s original target was $48 per share during the IPO, reflecting shifting sentiment amid broader SaaS sector volatility.
Despite the cut, the new target suggests potential upside of more than 25%, aligning with historical patterns where price target reductions signal a bottom for beaten-down stocks.