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Bonus Story from MarketBeat.com Wall Street Loves FIGS—Why Do Price Targets Predict Pullback?Written by Jennifer Ryan Woods. First Published: 3/4/2026. 
Key Takeaways - FIGS stock has surged nearly 260% over the past year, hitting a price not seen since shortly after its 2021 IPO.
- Q4 revenue topped $200 million—the company's best quarter ever—with scrubwear sales up 35% and international sales jumping 55%.
- Despite the rally and bullish analyst commentary, the consensus price target sits almost 30% below current levels.
After a dramatic decline following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has staged a strong comeback, trading at levels it hasn't seen in nearly four years. The stock, now above $17, has rallied roughly 260% over the past year and jumped about 58% in the last month alone. The rally has been driven by strong earnings and a wave of bullish analyst commentary. Yet the consensus 12-month price target is only $12.25—nearly 30% below today's price. That gap raises a key question: how much of FIGS' recovery is supported by fundamentals, and how much is momentum? Early investors enjoyed quick gains after the company's May 2021 IPO, which priced at $22 per share and surged to about $50 within a month. The pandemic boosted demand for medical apparel, but as COVID-19 eased the stock reversed sharply and within a year was trading below $8. In the following years, FIGS largely traded in the single digits; after dipping under $4 in April 2025, the shares began a renewed ascent. Earnings Momentum Sparks Rally Steady gains after positive Q1 and Q2 2025 earnings reports set the stage, but the Q3 2025 results, released Nov. 6, accelerated the move higher. Q3 showed stronger-than-expected revenue growth, solid demand across FIGS' core business and healthy margins despite tariff pressures. The company updated its full-year guidance, raising expectations for net revenue and adjusted EBITDA margins. Wall Street reacted positively, sending the stock up more than 30% over the following week and prompting Zacks Research to upgrade the shares to Strong Buy from Hold. The momentum continued with the Q4 2025 earnings report released Feb. 26. FIGS reported a 33% increase in quarterly revenue—its best quarter to date—with sales topping $200 million. During the earnings call, management pointed to broad-based strength, including gains in active customers and higher average order values; the company also noted the marketing boost from outfitting Team USA's medical staff at the Winter Olympics. Scrubwear—FIGS' core product, representing more than three-quarters of net revenue—was a standout, with sales up 35%. International sales rose 55%, contributing to a record full-year net revenue of $630 million, a 14% year-over-year increase. Despite tariff-related pressure on gross margins, profitability held up: full-year adjusted EBITDA margin beat the company's target by more than 200 basis points. Analysts Applaud Earnings and Outlook FIGS issued an upbeat outlook for the year ahead, citing continued demand support from growth in healthcare jobs, plans to enter new international markets, a focus on additional growth opportunities across businesses and a continued stock buyback program. For fiscal 2026, management expects net revenue to grow 10% to 12% and for profitability targets to improve. Analysts reacted with a flurry of upgrades and target changes after the earnings. Barclays raised its rating to Strong Buy from Hold, KeyCorp moved to Overweight from Sector Weight with a $17 target, and Goldman Sachs shifted 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' improved results are the clear catalyst behind the push to four-year highs. The stock was already climbing ahead of the Q4 report—up nearly 14% the session before the release—and the rally intensified after the announcement, surging 24% the first trading day and adding another 10% the next day. As of March 4, the stock was trading above $17, well above Morgan Stanley's $8 target from January and higher than KeyCorp's $17 target. The gap between bullish analyst commentary and relatively modest price targets suggests analysts appreciate FIGS' improving fundamentals but remain cautious on valuation. At current levels, shares trade at a price-to-earnings ratio approaching 90, implying much of the company's expected growth may already be priced in. There are few direct public peers to FIGS, but lululemon athletica inc. (NASDAQ: LULU)—a dominant lifestyle-apparel player—is trading at a P/E below 12 (according to MarketBeat data). The bottom line: investors are rewarding FIGS' turnaround, but skepticism remains about whether the stock can sustain this momentum or if a pullback could occur.
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