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Wednesday's Exclusive News Wall Street Loves FIGS—Why Do Price Targets Predict Pullback?Written by Jennifer Ryan Woods. Posted: 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: Have $500? Invest in Elon's AI Masterplan
After a steep decline following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has roared back to life, 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 sits at just $12.25—almost 30% below the current price. That contrast raises the question: how much of FIGS' recovery is supported by fundamentals, and how much is momentum? A look back at the company's history provides context. After its May 2021 IPO at $22 per share, FIGS briefly climbed to about $50 per share before reversing course as pandemic-driven demand faded. Elon did the seemingly impossible – far faster than anyone expected… And it's sent the tech industry into PANIC MODE. ChatGPT, Claude, Google Gemini, and DeepSeek could soon become obsolete. And three little-known firms could soar 10X or higher as a result. Get the details here. As COVID-19-related tailwinds eased, shares fell sharply and, within 12 months, traded below $8. For the following years FIGS largely remained range-bound in the single digits; after dipping below $4 in April 2025, the stock began a renewed ascent. Earnings Momentum Sparks Rally After steady gains following positive Q1 and Q2 2025 earnings reports, the Q3 2025 results released on Nov. 6 pushed the stock higher. The report showed stronger-than-expected revenue growth, solid demand across its core business, and healthy margins despite tariff pressures. The company raised its full-year guidance for net revenue and adjusted EBITDA margins, and Wall Street responded, 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 rally accelerated after the Q4 2025 earnings report released Feb. 26. The quarter delivered a 33% jump in revenue and was FIGS' best quarterly revenue yet, with sales topping $200 million. In the earnings call—the company earned some attention by outfitting Team USA's medical team at the Winter Olympics—management pointed to strength across the business, including growth in its active customer base and higher average order values. Scrubwear, FIGS' core segment that accounted for more than three-quarters of net revenue, rose 35%. International sales climbed 55% and helped fuel growth. The fourth quarter capped a strong year: net revenue rose 14% year-over-year to a record $630 million. Despite tariff-related pressure on gross margins, profitability was solid, with full-year adjusted EBITDA margin beating its target by more than 200 basis points. Analysts Applaud Earnings and Outlook FIGS issued an upbeat outlook, forecasting continued demand partly supported by growth in healthcare jobs, plans to expand into new international markets, prioritization of growth opportunities across its businesses, and continuation of its share buyback program. For fiscal 2026, the company expects net revenue growth of 10% to 12% with improving profitability targets. Analysts responded with a string of upgrades and target adjustments. Barclays raised its rating to Strong Buy from Hold, KeyCorp moved to Overweight from Sector Weight with a $17 price 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' earnings momentum is the primary catalyst behind its move to four-year highs. Shares began climbing ahead of the Q4 report, jumping nearly 14% in the session before 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 exceeding KeyCorp's $17 target. The gap between bullish sentiment and relatively conservative price targets suggests analysts appreciate FIGS' improving fundamentals but remain cautious about valuation. At current levels, shares trade at a price-to-earnings ratio near 90, implying much of the company's expected growth may already be priced in. Although there are few publicly traded direct competitors to FIGS, lululemon athletica inc. (NASDAQ: LULU)—a dominant lifestyle apparel player—trades at a P/E of less than 12 (according to MarketBeat data). The bottom line: investors have rewarded FIGS' turnaround, but skepticism persists about whether the rally can be sustained or if a pullback is likely.
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