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This Week's Exclusive News Wall Street Loves FIGS—Why Do Price Targets Predict Pullback?Written by Jennifer Ryan Woods. Publication Date: 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.
After a steep decline following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has bounced back, trading at a level it hasn't seen in nearly four years. The stock, now above $17, has surged almost 260% over the past year, including a 58% gain in the last month alone. The rally has been driven by stronger-than-expected earnings and a wave of bullish analyst commentary. Yet the consensus 12-month price target remains just $12.25—roughly 30% below the current share price. That gap raises the question: how much of FIGS' recovery is supported by fundamentals, and how much is momentum? Looking at the company's history and recent reports helps shed light. 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The COVID-19 pandemic boosted demand for medical apparel, but as the pandemic eased shares reversed course and fell below $8 within a year. FIGS then traded mostly in the single digits until it dipped under $4 in April 2025 and began another upward move. 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, provided a bigger catalyst. The quarter showed stronger-than-expected revenue growth, healthy demand across core categories and resilient margins despite tariff headwinds. FIGS raised its full-year guidance for net revenue and adjusted EBITDA margins, and the market reacted positively. The stock climbed more than 30% over the following week, and Zacks Research upgraded the shares to Strong Buy from Hold. Momentum continued after the Q4 2025 earnings report on Feb. 26. The company reported a 33% jump in quarterly revenue—its best quarter on record—with sales topping $200 million. In the earnings call, FIGS, which outfitted Team USA's medical team at the Winter Olympics, pointed to broad-based strength, including growth in active customers and higher average order values. Scrubwear, FIGS' core segment that accounts for more than three-quarters of net revenue, grew 35%. International sales contributed strongly as well, rising 55%. The fourth quarter capped a strong year: net revenue increased 14% year-over-year to a record $630 million. Despite tariff pressures affecting gross margins, full-year adjusted EBITDA margin beat targets by more than 200 basis points. Analysts Applaud Earnings and Outlook FIGS also issued an optimistic outlook, expecting continued demand supported in part by growth in healthcare employment. Management highlighted plans to expand into additional international markets, prioritize growth initiatives across its businesses and continue its stock buyback program. For fiscal 2026, management expects net revenue to grow 10%–12% with improved profitability targets. Analysts reacted with a flurry of upgrades and raised ratings: Barclays moved to Strong Buy from Hold, KeyCorp shifted to Overweight from Sector Weight with a $17 price target, Goldman Sachs moved to Hold from Strong Sell, BTIG reiterated Buy with a $15 target, and Telsey Advisory raised its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' improved results and outlook are the main drivers behind the run to four-year highs. Shares began rising ahead of the Q4 report and accelerated after the release—surging 24% on the first trading day following the results and adding 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 the $17 target set by KeyCorp. The gap between bullish analyst commentary and relatively modest price targets suggests analysts appreciate the improving fundamentals but remain cautious about valuation. At current levels, FIGS trades at a price-to-earnings ratio near 90, implying much of its expected growth may already be priced in. There are few publicly traded direct competitors to FIGS, but for context, lululemon athletica inc. (NASDAQ: LULU)—a dominant lifestyle apparel player—trades at a P/E of less than 12 (MarketBeat comparison). The takeaway: investors are rewarding FIGS' turnaround, but questions remain about how sustainable the rally is and whether a pullback could be ahead.
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