Figma's (FIG) Q4 results demonstrated the company's improving portfolio and positioning in artificial intelligence, but questions remain on the impact that price hikes will have on business, Morgan Stanley analysts said in a Thursday note.

The analysts said that Figma's price increases in March last year boosted the company's net revenue retention, but the degree of its contribution remains debatable and would require further clarity before a rating change.

Morgan Stanley said that Figma's 2026 revenue targets imply a 30% growth from a year earlier at the midpoint, ahead of consensus estimates, which expect a 23% increase.

The analysts said that the rising usage of AI-based tooling within the Figma platform, broadening partnerships with Frontier AI Labs, and new consumptive monetization avenues have contributed to better-than-expected Q4 results and 2026 guidance.

Morgan Stanley retained an equal-weight rating on the stock, but lowered its price target to $44 from $48.

Shares of the company were up 3% in recent Thursday trading.

Price: 25.06, Change: +0.87, Percent Change: +3.58