11:06 AM EDT, 08/25/2025 (MT Newswires) -- Figma ( FIG ) is a market-leading design platform with a risk-reward profile that looks balanced at a valuation of over 35 times enterprise value to sales, Morgan Stanley said in a Monday note initiating coverage of the company's stock.

The company's browser-based approach to digital product design allows users to consolidate multiple workflows onto one platform, providing Figma ( FIG ) "a right to win" in market adjacencies to its core offering, Morgan Stanley analysts said.

Figma's ( FIG ) growth strategy includes the expansion of its portfolio and monetization of personas outside of the core user experience designer, the analysts said. A $26 billion total addressable market provides a large runway for continued expansion, they said.

Generative AI may increase Figma's ( FIG ) competition, but the company is "well positioned" due to its prominence in the structurally important design market, the analysts said.

Morgan Stanley initiated coverage of the company's stock at equal-weight with a price target of $80.

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