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This Week's Bonus Story Wall Street Loves FIGS. So Why Do Price Targets Predict a Pullback?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 climbed back to a price it hasn't seen in nearly four years. The stock has surged almost 260% over the past year, including a 58% gain in the last month alone. The rally has been driven by strong earnings reports and a wave of bullish analyst commentary. Yet despite the run-up, the consensus 12-month price target sits at just $12.25 — almost 30% below the current stock price. That raises the question: how much of this recovery is supported by fundamentals, and how much is momentum? A closer look at FIGS' recent results and the stock's price action offers some clues. Early investors in FIGS saw a quick windfall after the company's IPO, which debuted in May 2021 at $22 per share and surged to $50 within a month. Demand for medical apparel was strong during the COVID-19 pandemic, but as the pandemic eased shares reversed sharply and, within 12 months, were trading below $8. In the years that followed, FIGS largely traded in the single digits until an April 2025 dip below $4 preceded the most recent run higher. Earnings Momentum Sparks Rally After steady gains following positive Q1 and Q2 2025 earnings reports, the Q3 2025 results, released on Nov. 6, pushed the stock even higher. The report showed stronger-than-expected revenue growth, healthy demand across core categories, and resilient margins despite tariff pressure. The company raised its full-year guidance for net revenue and adjusted EBITDA margins, prompting a more than 30% move higher over the following week and a Zacks Research upgrade to Strong Buy from Hold. Silver: 20% + 68%
Tim Plaehn just found a Silver ETF that delivers monthly income (up to 20% in annual distributions) plus share appreciation (68% in 5 months). The precious metal has become one of the best investments for growth AND income right now. Click here and start to collect in the next 30 days. Key Points - FIGS stock is up nearly 260% over the last year
- Strong earnings have fueled the rally
- Stock is trading almost 30% above the average price target
- Special Report: [Sponsorship-Ad-6-Format3]
Momentum continued after the Q4 2025 earnings report on Feb. 26. The quarter delivered a 33% year-over-year revenue increase — the company's best quarterly revenue yet, topping $200 million. Management highlighted growth in the active customer base and higher average order values, and scrubwear — which accounted for more than three-quarters of net revenue — grew 35%. International sales rose 55%, helping drive overall growth. For the full year, net revenue climbed 14% to a record $630 million, and full-year adjusted EBITDA margin exceeded targets by more than 200 basis points despite tariff-related margin pressure. Earnings And Outlook Spark Analyst Support FIGS issued an upbeat outlook for fiscal 2026, expecting net revenue to grow 10% to 12% and forecasting improved profitability. Management pointed to continued demand from healthcare job growth, expansion into new international markets, prioritized growth initiatives across businesses, and an ongoing share buyback program. Analysts largely reacted positively to the results and outlook. Barclays upgraded to Strong Buy from Hold, KeyCorp moved to Overweight from Sector Weight with a $17 price target, and Goldman Sachs shifted 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' strong earnings were the main catalyst for the stock's push to four-year highs. Shares began climbing ahead of the Q4 report, jumping nearly 14% in the session before the release. The rally accelerated after the results: the stock rallied 24% on the first trading day after the announcement and added another 10% the next day. As of March 4, the stock was trading above $17 — roughly 30% above the average 12-month price target of $12.25 based on 10 analyst reports. That level is more than double Morgan Stanley's $8 target issued in January and sits at or above most recent analyst targets, including KeyCorp's $17. The gap between bullish analyst sentiment and comparatively modest price targets suggests analysts appreciate FIGS' improving fundamentals but remain cautious about valuation. At current prices, the stock trades at a price-to-earnings ratio near 90, implying much of the company's expected growth is already priced in. Investors are celebrating the turnaround, but skepticism remains about whether the rally can continue or if a pullback may be likely.
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