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Exclusive Story from MarketBeat Media Wall Street Loves FIGS—Why Do Price Targets Predict Pullback?Submitted by Jennifer Ryan Woods. Article Published: 3/4/2026. 
What You Need to Know - 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 stunning plunge following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has roared back, trading at a price it hasn't seen in nearly four years. The stock, now above $17, has surged almost 260% over the past year, including a 58% jump in the last month alone. The rally has been driven by strong earnings reports and a wave of bullish analyst commentary. Yet despite that momentum, the consensus 12-month price target is only $12.25—roughly 30% below the current price. That raises a key question: how much of this recovery reflects improving fundamentals, and how much is pure momentum? A look at FIGS' history and recent results offers some clues. Early investors saw a quick windfall after the company's May 2021 IPO, which debuted at $22 per share and surged to $50 within a month as demand for medical apparel spiked during the COVID-19 pandemic. As the pandemic eased, shares reversed sharply and were trading below $8 within a year. In the years that followed, FIGS mostly traded in the single digits. After dipping below $4 in April 2025, the stock began another upward move—this time sustained. Earnings Momentum Sparks Rally Steady gains followed positive Q1 and Q2 2025 earnings reports, but the Q3 2025 results, released on Nov. 6, really accelerated the trend. The company reported stronger-than-expected revenue growth, healthy demand across core categories and solid margins despite tariff headwinds. FIGS also raised its full-year guidance for net revenue and adjusted EBITDA margins, prompting Wall Street to rally behind the stock. The company climbed more than 30% over the following week and drew an upgrade from Zacks Research to Strong Buy from Hold. The momentum continued after the Q4 2025 earnings report on Feb. 26. The company posted a 33% year-over-year revenue increase—its best quarterly revenue ever, topping $200 million. Management highlighted strength across the business on the earnings call, including growth in active customers and higher average order values. FIGS also noted the brand's visibility after outfitting Team USA's medical staff during the Winter Olympics. Scrubwear, the company's core category, was a standout: sales in that segment—more than three-quarters of net revenue—increased 35%. International sales rose 55%, helping lift full-year net revenue 14% to a record $630 million. Despite tariff pressures that compressed gross margins, profitability remained strong, with full-year adjusted EBITDA margin beating the company's target by over 200 basis points. Analysts Applaud Earnings and Outlook FIGS provided an optimistic outlook for the year ahead, citing continued demand supported by growth in healthcare employment. The company plans to expand into additional international markets, pursue growth opportunities across its businesses and continue its stock buyback program. For fiscal 2026, management expects net revenue to grow 10%–12% and anticipates improvement in profitability metrics. Analysts reacted with a flurry of bullish notes. Barclays upgraded the rating 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 with a $15 target, and Telsey Advisory raised its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' strong results are the clear catalyst behind the stock's four-year high. Shares began climbing even before the Q4 report, jumping nearly 14% in the session ahead of the release. After the results, the rally intensified: the stock surged 24% on the first trading day following the report and added another 10% the next day. As of March 4, the stock was trading above $17, more than double Morgan Stanley's $8 target issued in January and above KeyCorp's $17 target. The gap between upbeat analyst commentary and relatively modest price targets suggests that analysts like the company's improving fundamentals but remain cautious about valuation. At current levels, shares trade at a price-to-earnings ratio of roughly 90, implying that much of FIGS' expected growth may already be priced in. There are few publicly traded direct competitors to FIGS. By comparison, lululemon athletica inc. (NASDAQ: LULU)—a dominant lifestyle apparel player—trades at a P/E of less than 12 (MarketBeat compare). The bottom line: investors are rewarding FIGS' turnaround, but skepticism remains about whether the stock can sustain this run or if a pullback might occur.
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