Figma (FIG) has a strong growth trajectory in software, with its artificial intelligence-embedded digital design platform disrupting the market, Oppenheimer said in a note Wednesday.

The brokerage said there are few software firms that have scaled their revenue run-rate to $1.22 billion as quickly as Figma, which deserves a premium for having a "visionary" technology management team.

Bears, however, expect agentic automation could reduce the value of design platforms and subscriber growth, increase AI-native competitors, and weaken Figma's moat, according to the note.

The brokerage estimates Figma's total addressable market at over $33 billion and sees potential price upside to $29 to $31 per share in a bull case and downside to $13 to $15 per share in a bear case.

Oppenheimer initiated coverage on Figma stock with a perform rating.

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