Bank of America reinstates Figma coverage with Buy rating, citing AI as a growth tailwind

Bank of America said it is reinstating coverage of Figma, moving the stock to a Buy rating with a $30 price target, according to a report syndicated by Yahoo Finance on July 7, 2026. The call frames the recent debate around generative AI as largely misdirected, arguing that AI capabilities are not simply replacing design workflows but instead expanding the set of use cases where companies need modern, collaborative design tools.

In the note, Bank of America’s view centers on generative AI shifting how people create and iterate on digital products, with Figma positioned as a platform that can adapt to those new workflows. The bank contends that fears generative AI would “disrupt” Figma have been overblown, and that AI adoption is turning into a “growth catalyst” rather than a threat, the report said.

Figma is best known as a collaborative design platform used by product teams to create user interfaces and prototypes. Unlike single-user design software, Figma is built around shared workspaces, versioning, and browser-based collaboration, features many companies use to coordinate across design, product management, and engineering. In that context, analysts generally look at how new technology affects usage, conversion to paid plans, and the pace of onboarding within organizations.

Bank of America’s reinstated stance matters in part because coverage changes can influence how quickly investors learn about company-specific drivers. When an analyst shifts from no coverage back to a named rating, it often coincides with renewed conviction around fundamentals, valuation, or near-term catalysts. In this case, the key catalyst identified by the bank is the impact of generative AI on demand for design and prototyping tools.

Still, the July 7 report did not provide additional, fully specific detail in the syndicated text on what assumptions sit behind the $30 price target, such as projected revenue growth, margins, or timing of AI-related monetization. It also did not spell out what, exactly, Bank of America expects to change in Figma’s product roadmap, pricing, or customer adoption rates as AI features mature.

For investors and observers, the practical question is whether AI will increase the number of teams using Figma, deepen seat expansion across departments, or drive higher usage by lowering the time required to produce first drafts and iterations. If AI speeds up design output while still requiring a shared source of truth, platforms like Figma could see both greater engagement and higher retention. If instead AI leads to more isolated “assistant-generated” output that does not rely on shared design systems, the story could look different.

What to watch next is whether Figma details further integration of AI into its workflow and how customers respond. Bank of America’s note points to AI as a growth catalyst, but the market will likely want evidence, such as updates to product capabilities, changes in enterprise adoption, or commentary in Figma’s next investor communications about AI-driven demand. Until those indicates show up in disclosed results, the argument remains an analyst’s forward-looking interpretation rather than a quantified, reported outcome.