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This Month's Bonus Article Wall Street Loves FIGS. So Why Do Price Targets Predict a Pullback?By Jennifer Woods. Originally Published: 3/2/2026. After a stunning plunge following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has roared back to a price it hadn'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 has been fueled by stronger-than-expected earnings and a wave of bullish analyst commentary. Yet despite the run-up and optimistic reports, the consensus 12-month price target sits at just $12.25 — nearly 30% below the current share price. How much of this recovery is supported by fundamentals, and how much is 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 at $22 per share, which briefly climbed to about $50 within a month as demand for medical apparel surged during the pandemic. As COVID-19-related demand eased, shares reversed sharply and traded below $8 within a year. Over the following years, FIGS mostly oscillated in the single digits. After dipping below $4 in April 2025, however, the stock began another sustained move higher. Earnings Momentum Sparks Rally FIGS registered steady gains after positive Q1 and Q2 2025 earnings, but the Q3 2025 results, released on Nov. 6, really accelerated the rally. The report showed stronger-than-expected revenue growth, solid demand across its core business and resilient margins despite tariff pressures. The company also issued an upbeat outlook, raising full-year guidance for net revenue and adjusted EBITDA margins. Wall Street responded, pushing the stock up more than 30% over the following week and prompting Zacks Research to upgrade the shares to Strong Buy from Hold. What if you could claim a stake in what's set to be the biggest IPO ever… starting with just $500?
Everyone is talking about Elon Musk's SpaceX IPO. Click here to get the details and I'll show you how to claim your stake… 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]
The momentum continued after the Q4 2025 earnings report on Feb. 26. The quarter delivered a 33% revenue increase and marked the company's best quarterly sales, topping $200 million. Management highlighted strength across the business, including growth in active customers and higher average order values. Scrubwear — more than three-quarters of net revenue — was a standout, rising 35%, while international sales jumped 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, full-year adjusted EBITDA margin exceeded the company's target by more than 200 basis points. Earnings And Outlook Spark Analyst Support FIGS issued an optimistic outlook for fiscal 2026, forecasting net revenue growth of 10% to 12% and improved profitability targets. The company cited continued demand driven partly by growth in healthcare jobs, plans to expand into new international markets, additional growth initiatives across its businesses and an ongoing share buyback program. Analysts followed with a flurry of upgrades and revised targets 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 with a $15 target, and Telsey Advisory raised its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' earnings strength has clearly driven the stock to four-year highs. Shares began climbing before the Q4 report, rising nearly 14% in the session ahead of the release, then surged even more after the results — jumping 24% the first trading day and adding another 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 is more than double Morgan Stanley's $8 target issued in January and at or above most other recent targets, including KeyCorp's $17. The gap between upbeat analyst sentiment and relatively modest price targets suggests analysts appreciate FIGS' improving fundamentals but remain cautious about valuation. At its current price, the shares trade at a price-to-earnings ratio near 90, implying that much of the company's expected growth may already be priced in. Investors are clearly applauding the turnaround, but skepticism remains about whether the stock can sustain further gains or if a pullback is possible.
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