(Reuters) -Wall Street brokerages on Monday started their coverage of Figma with neutral ratings, as they weighed the design software maker’s lofty valuation amid stiff competition against its potential for artificial intelligence-driven growth.

Figma made a stellar debut on the New York Stock Exchange last month, with its share price more than doubling to $85 from its IPO price of $33.

The strong debut paved the way for high-profile tech listings as deal activity rebounded from tariff-driven volatility.

As the industry-mandated quiet period ended on Monday, J.P. Morgan, RBC Capital Markets and Morgan Stanley initiated coverage with the equivalent of ‘hold’ ratings. Shares of the company were down nearly 1% at $76.64 in premarket trading.

“We view Figma as a market-leading platform, bu

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