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Further Reading from MarketBeat.com Wall Street Loves FIGS—Why Do Price Targets Predict Pullback?Reported by Jennifer Ryan Woods. Article 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.
After a dramatic decline following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has staged a powerful comeback, reaching price levels not seen in nearly four years. The stock, now trading 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 and a wave of bullish analyst commentary. Yet the consensus 12-month price target sits at just $12.25—roughly 30% below the current price. That gap raises a key question: how much of FIGS' recovery is rooted in fundamentals, and how much is momentum? A look at the company's history and recent results offers some clues. Early investors in FIGS enjoyed a quick windfall after the company's May 2021 IPO at $22 per share; within a month the stock briefly reached $50. The pandemic-era demand for medical apparel helped fuel that run. As COVID-19 pressures eased, however, shares reversed sharply and within a year traded below $8. FIGS then spent several years largely range-bound in the single digits, and after dipping below $4 in April 2025, the stock began another sustained move upward. Earnings Momentum Sparks Rally Steady gains following positive Q1 and Q2 2025 earnings reports set the stage for a bigger breakout. The Q3 2025 results, released on Nov. 6, showed stronger-than-expected revenue growth, broad demand across the core business and healthy margins despite tariff headwinds. The company raised its full-year guidance for net revenue and adjusted EBITDA margins, and Wall Street reacted positively: the stock climbed more than 30% the following week and Zacks Research upgraded FIGS to Strong Buy from Hold. The momentum continued after the Q4 2025 earnings report released Feb. 26. The quarter delivered a 33% jump in revenue and marked the company's best quarterly revenue to date, with sales topping $200 million. Management pointed to strength across the business—growth in the active customer base, higher average order values and robust demand after the company outfitted Team USA's medical staff during the Winter Olympics. Scrubwear, FIGS' core product line that represents more than three-quarters of net revenue, grew 35% in the quarter. International sales were a notable driver too, rising 55%. For the full year, net revenue climbed 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 exceeded management's target by more than 200 basis points. Analysts Applaud Earnings and Outlook FIGS provided an upbeat outlook for the year ahead, citing continued demand supported by growth in healthcare employment, plans to enter new international markets, priorities to expand across its businesses and a continuation of its share buyback program. For fiscal 2026, the company expects net revenue growth of 10% to 12% along with improved profitability targets. Analysts responded with a flurry of upgrades and revised targets. Barclays raised its rating to Strong Buy from Hold, KeyCorp moved to Overweight from Sector Weight with a $17 price target, 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 Strong earnings momentum has been the primary catalyst behind FIGS' rise to four-year highs. Shares started climbing before the Q4 report—jumping nearly 14% in the session ahead of the release—and the rally accelerated afterwards. The stock surged 24% on the first trading day after the results and added another 10% the next day. As of March 4, the stock was trading above $17, exceeding many analyst targets, including Morgan Stanley's $8 target from January and matching or nudging past the highest published target of $17 from KeyCorp. The divergence between bullish analyst commentary and relatively modest price targets suggests analysts appreciate FIGS' improving fundamentals but remain cautious about valuation. At current prices the shares trade at a price-to-earnings ratio near 90, implying much of the company's expected growth is already priced in. There are few direct publicly traded peers to FIGS, though lifestyle apparel leader lululemon athletica inc. (NASDAQ: LULU)—a dominant player in lifestyle apparel—trades at a P/E below 12. That contrast underscores the valuation risk: investors are rewarding FIGS for a clear turnaround, but skepticism persists about whether the stock can sustain its ascent or if a pullback is likely. For investors, the choice comes down to weighing strong operational momentum and a constructive outlook against a stretched valuation. Those bullish on FIGS will point to continued revenue growth and margin improvement; those more cautious will note the elevated P/E and the possibility that future performance is already reflected in the share price.
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