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This Month's Bonus Story Wall Street Loves FIGS. So Why Do Price Targets Predict a Pullback?Author: Jennifer Woods. Article 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 hasn't touched in nearly four years. The stock has surged almost 260% over the past year, including a 58% rise 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 move and the upbeat sentiment, the consensus 12-month price target sits at just $12.25 — almost 30% below the current stock price. That raises the question: how much of this recovery is supported by fundamentals, and how much is momentum? A closer look at FIGS' recent results and the stock's price action offers some clues. Early investors in FIGS enjoyed a quick windfall after the company's IPO, which debuted in May 2021 at $22 per share and, within a month, jumped to $50. Demand during the COVID-19 pandemic buoyed medical apparel makers, but as the pandemic eased, shares reversed sharply and, within 12 months, were trading below $8. In the years that followed FIGS largely traded in the single digits. After dipping below $4 in April 2025, however, the stock began to move higher again. Earnings Momentum Sparks Rally FIGS notched steady gains after positive Q1 and Q2 2025 earnings reports, but the Q3 2025 results, released on Nov. 6, accelerated the rally. The company reported stronger-than-expected revenue growth, solid demand across its core business, and resilient margins despite tariff pressures. Management also issued an upbeat outlook, raising full-year guidance for net revenue and adjusted EBITDA margins. Wall Street rewarded the news: the stock climbed more than 30% over the following week, and Zacks Research upgraded 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 featured a 33% jump in revenue and was the company's best quarterly result, with sales topping $200 million. In its earnings call, FIGS pointed to 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, with sales up 35%, while international sales rose 55%. The fourth quarter capped a strong year: net revenue for the full year rose 14% to a record $630 million, and full-year adjusted EBITDA margin exceeded its target by more than 200 basis points despite tariff-related margin pressure. Earnings And Outlook Spark Analyst Support FIGS issued an upbeat outlook for fiscal 2026, expecting continued demand supported in part by growth in healthcare employment. The company plans to expand into new international markets, pursue growth opportunities across its businesses, and continue its share buyback program. For fiscal 2026, FIGS projects net revenue growth of 10% to 12%, with improving profitability targets. Analysts responded with a flurry of upgrades and positive notes after the earnings. 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 its Buy rating with a $15 target, and Telsey Advisory lifted its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' improved results have been the clear catalyst for the stock's move to four-year highs. Shares began climbing ahead of the Q4 report, rising nearly 14% in the session before the release, and the rally intensified afterward: the stock jumped 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, roughly 30% above the average 12-month price target of $12.25 based on 10 analyst reports. That price is more than double Morgan Stanley's $8 target issued in January and sits above KeyCorp's top target of $17. The gap between bullish analyst commentary and relatively modest price targets suggests analysts like FIGS' improving fundamentals but remain cautious about valuation. At current levels, 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 rewarding the turnaround, but skepticism persists about whether the stock can sustain this climb or if a pullback is possible.
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