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This Week's Bonus Story Wall Street Loves FIGS. So Why Do Price Targets Predict a Pullback?Submitted by Jennifer Woods. First Published: 3/2/2026. After a stunning plunge following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has returned to a price it hasn't seen in nearly four years. The stock has surged almost 260% over the past year, including a 58% jump in the last month alone. The rally was driven by stronger-than-expected earnings and a wave of bullish analyst commentary. Yet the consensus 12-month price target remains just $12.25 — roughly 30% below the current share price. That gap raises the question: how much of this recovery reflects fundamentals versus momentum? A closer look at FIGS' recent results and price action offers some clues. Early investors in FIGS enjoyed a quick windfall after the company's May 2021 IPO priced at $22 per share; within a month the stock surged to about $50. Demand for medical apparel was elevated during the COVID-19 pandemic, but as the pandemic eased shares reversed sharply and were trading below $8 within a year. In the following years the stock mostly traded in the single digits. After slipping under $4 in April 2025, however, the shares began a renewed upward move. Earnings Momentum Sparks Rally FIGS logged steady gains after positive Q1 and Q2 2025 earnings, but its Q3 2025 results, released on Nov. 6, were a clear catalyst. The report showed stronger-than-expected revenue growth, robust demand across core categories, and healthy margins despite tariff pressures. The company raised its full-year guidance for net revenue and adjusted EBITDA margins, prompting a more than 30% gain in the stock over the following week and an upgrade from Zacks Research to Strong Buy from Hold. Silver: 20% + 68%
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- Strong earnings have fueled the rally
- Stock is trading almost 30% above the average price target
- Special Report: [Sponsorship-Ad-6-Format3]
The momentum continued with the Q4 2025 earnings report released Feb. 26. Q4 revenue jumped 33%, delivering the company's best quarterly sales yet — topping $200 million. Management highlighted growth in active customers, higher average order values and strong performance in scrubwear, which accounted for more than three-quarters of net revenue and rose 35%. International sales were a notable contributor as well, increasing 55%. The fourth quarter capped a solid year: full-year net revenue rose 14% year-over-year to a record $630 million. Despite tariff-related pressure on gross margins, profitability held up. Full-year adjusted EBITDA margin beat management's target by more than 200 basis points. Earnings And Outlook Spark Analyst Support FIGS issued an upbeat outlook, citing continued demand aided by growth in healthcare employment, plans to expand into new international markets, and a focus on growth opportunities across its businesses alongside an ongoing stock buyback program. For fiscal 2026, the company expects net revenue to grow 10% to 12%, with improving profitability targets. Analysts responded with a wave of positive notes. Barclays raised its rating to Strong Buy from Hold, KeyCorp moved to Overweight from Sector Weight with a $17 price target, and Goldman Sachs adjusted its rating to Hold from Strong Sell. BTIG reiterated a Buy rating with a $15 target, and Telsey Advisory raised its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' earnings momentum has been the primary force behind its move to four-year highs. The stock began climbing even before the Q4 report, jumping nearly 14% in the session ahead of the release, and the rally accelerated after the results. The shares surged 24% on the first trading day following the report and added about 10% the next day. As of March 4, the stock was trading above $17, roughly 30% above the $12.25 average 12-month price target based on 10 analyst reports. That level also exceeds Morgan Stanley's $8 target from January and is in line with the highest target of $17 set by KeyCorp. The gap between bullish analyst sentiment and relatively modest price targets suggests analysts like FIGS' improving fundamentals but remain cautious about valuation. At current levels the stock trades at a price-to-earnings ratio near 90, implying much of expected growth may already be priced in. Investors appear to be rewarding the turnaround, but skepticism persists about whether the rally can continue uninterrupted or if a pullback may be coming.
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