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This Month's Bonus News Wall Street Loves FIGS—Why Do Price Targets Predict Pullback?Written by Jennifer Ryan Woods. Originally Published: 3/4/2026. 
Key Points - 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.
- Special Report: [Sponsorship-Ad-6-Format3]
After a sharp decline following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has staged a strong comeback, trading at a level it hasn't seen in nearly four years. The stock, now above $17, has surged roughly 260% over the past year, including a 58% gain in the past month. The rally has been driven by solid earnings and a wave of bullish analyst commentary. Yet despite that momentum, the consensus 12-month price target sits at just $12.25—about 30% below the current share price. That raises a key question: how much of this recovery rests on fundamentals, and how much on momentum? A look back at FIGS' history and its recent results provides some clues. Early investors enjoyed a quick windfall after the company's May 2021 IPO at $22 per share, when the stock spiked to $50 within a month. Demand for medical apparel was strong during the COVID-19 pandemic, but as conditions eased the stock reversed course and fell below $8 within a year. FIGS then spent several years trading in the single digits; after dipping under $4 in April 2025, the shares began a renewed climb. Earnings Momentum Sparks Rally Following steady gains after positive Q1 and Q2 2025 earnings reports, the company's Q3 2025 results, released on Nov. 6, pushed the stock higher. The report showed stronger-than-expected revenue growth, robust demand across core categories and healthy margins despite tariff pressures. FIGS also raised its full-year guidance for net revenue and adjusted EBITDA margins. Wall Street responded: the stock climbed more than 30% over the following week and Zacks Research upgraded the shares to Strong Buy from Hold. The momentum continued after the Q4 2025 earnings report on Feb. 26. The company posted a 33% jump in revenue—its best quarterly revenue to date—with sales topping $200 million. In the earnings call, FIGS highlighted broad strength, including growth in its active customer base and higher average order values; it also noted the visibility boost from outfitting Team USA's medical staff during the Winter Olympics. Scrubwear, the company's core category that accounts for more than three-quarters of net revenue, was a standout: sales in the segment rose 35%. International sales contributed as well, jumping 55%. The fourth quarter capped a strong year, with net revenue up 14% year-over-year to a record $630 million. Despite tariff pressures that weighed on gross margins, profitability held up—full-year adjusted EBITDA margin finished more than 200 basis points above target. Analysts Applaud Earnings and Outlook FIGS issued an optimistic outlook for the year ahead, citing continued demand supported in part by growth in healthcare employment. The company plans to expand into new international markets, prioritize growth across its businesses and continue its stock buyback program. For fiscal 2026, management expects net revenue to grow 10% to 12% and anticipates improving profitability. Analysts reacted with a flurry of upgrades and raised targets after the results. Barclays moved to Strong Buy from Hold; KeyCorp shifted to Overweight from Sector Weight with a $17 price target; Goldman Sachs adjusted its view to Hold from Strong Sell. BTIG reiterated a Buy rating with a $15 target, and Telsey Advisory raised its price target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' earnings momentum is the clear catalyst behind the move to four-year highs. Shares began rising before the Q4 report—jumping nearly 14% in the session ahead of the release—and the rally accelerated afterward. 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. That is more than double Morgan Stanley's $8 target issued in January and is above even the highest target of $17 set by KeyCorp. The gap between bullish analyst sentiment and comparatively low price targets suggests some analysts like FIGS' improving fundamentals but remain cautious about valuation. At current levels, the shares trade at a price-to-earnings ratio near 90, implying much of the company's expected growth may already be priced in. There are few publicly traded direct competitors to FIGS. Still, lululemon athletica inc. (NASDAQ: LULU)—a dominant lifestyle-apparel player—is trading at a P/E below 12. In short, investors are applauding FIGS' turnaround, but skepticism persists about whether the stock can sustain this ascent or whether a pullback could be coming.
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