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This Month's Exclusive News Wall Street Loves FIGS. So Why Do Price Targets Predict a Pullback?Written by Jennifer Woods. First Published: 3/2/2026. After a sharp decline following its 2021 IPO, medical and lifestyle apparel company FIGS, Inc. (NYSE: FIGS) has climbed back to a price it hasn't seen in nearly four years. The stock has surged almost 260% over the past year, including a 58% gain in the last month alone. The rally has been driven by stronger earnings and a wave of bullish analyst commentary. Yet despite that momentum, the consensus 12-month price target sits at just $12.25 — nearly 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 price action offers some clues. Early investors saw a quick windfall after the company's IPO, which debuted in May 2021 at $22 per share and, within a month, surged to $50. Demand for medical apparel was strong during the COVID-19 pandemic. As the pandemic eased, however, shares reversed sharply and were trading below $8 within 12 months. In the years that followed, FIGS remained mostly range-bound in the single digits. After dipping below $4 in April 2025, the stock began another upward leg. Earnings Momentum Sparks Rally FIGS posted steady gains after positive Q1 and Q2 2025 earnings reports, but the Q3 2025 results, released on Nov. 6, accelerated the move higher. The report delivered stronger-than-expected revenue growth, broad demand across its core business, and healthy margins despite tariff headwinds. The company raised full-year guidance for net revenue and adjusted EBITDA margins, which pushed the stock up more than 30% over the following week and prompted Zacks Research to upgrade FIGS to Strong Buy from Hold. I Met Elon Musk "Face-to-Face"
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- Strong earnings have fueled the rally
- Stock is trading almost 30% above the average price target
- Special Report: [Sponsorship-Ad-6-Format3]
Momentum continued after the Q4 2025 earnings report released on Feb. 26. The company reported a 33% jump in revenue — its best quarterly revenue ever — with sales topping $200 million. Management pointed to strength across the business, including growth in active customers and higher average order values. Scrubwear, which accounts for more than three-quarters of net revenue, rose 35%, while international sales increased 55%. The fourth quarter capped a strong year: full-year net revenue rose 14% year-over-year to a record $630 million, and full-year adjusted EBITDA margin exceeded its target by more than 200 basis points despite tariff pressures. Earnings And Outlook Spark Analyst Support FIGS issued an upbeat outlook, expecting continued demand partly driven by growth in healthcare employment. It outlined plans to expand into new international markets, prioritize growth across its business lines, and continue its stock buyback program. For fiscal 2026, FIGS expects net revenue to grow 10% to 12%, with improving profitability targets. Analysts reacted positively to the outlook and results. Barclays upgraded 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 raised its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' strong results have been the main catalyst behind the run to four-year highs. Shares began climbing ahead of the Q4 report, jumping nearly 14% in the session before the release, and the rally intensified afterward: the stock gained 24% on the first trading day following the report, then added roughly 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 level is more than double Morgan Stanley's $8 target issued in January and sits above the highest target — $17 from KeyCorp. The gap between bullish analyst sentiment and relatively modest price targets suggests analysts appreciate FIGS' improving fundamentals but remain cautious about valuation. At current prices, shares trade at a price-to-earnings ratio near 90, implying much of the company's expected growth may already be priced in. Investors applauding the turnaround should still weigh the lofty valuation and the risk of a pullback against the company's positive momentum and outlook.
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