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Exclusive Content Wall Street Loves FIGS. So Why Do Price Targets Predict a Pullback?By 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 returned 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 strong earnings reports and a wave of bullish analyst commentary. Yet despite the surge, the consensus 12-month price target sits at just $12.25 — roughly 30% below the current stock price. That gap raises a key question: how much of this recovery is supported by fundamentals, and how much is momentum? A closer look at FIGS' recent earnings and the stock's price action offers some clues. Early investors in FIGS saw a quick windfall after the company's IPO, which debuted in May 2021 at $22 per share and surged to about $50 within a month as demand for medical apparel spiked during the COVID-19 pandemic. As the pandemic eased, however, shares reversed sharply and were trading below $8 within a year. In the years that followed, FIGS mostly traded in the single digits. After dipping below $4 in April 2025, the stock began another move higher. Earnings Momentum Sparks Rally Following steady gains after positive Q1 and Q2 2025 earnings reports, the Q3 2025 results, released on Nov. 6, pushed the stock even higher. The report showed stronger-than-expected revenue growth, solid demand across core segments, and healthy margins despite tariff pressures. Management also issued an upbeat outlook, raising full-year guidance for net revenue and adjusted EBITDA margins. Wall Street responded positively, sending the stock up more than 30% over the following week and prompting Zacks Research to upgrade the stock 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 recent Q4 2025 earnings report, released in late February. The quarter delivered a 33% jump in revenue — the company's best quarterly revenue to date — with sales topping $200 million. On the earnings call, management cited broad-based strength, including growth in the active customer base and higher average order values. Core scrubwear sales — which account for more than three-quarters of net revenue — rose 35%, and international sales climbed 55%. The fourth quarter capped a strong year: full-year net revenue rose 14% year-over-year to a record $630 million. Despite tariff-related pressure on gross margins, profitability held up, with full-year adjusted EBITDA margin beating targets by more than 200 basis points. Earnings And Outlook Spark Analyst Support FIGS issued an upbeat outlook for the year ahead, anticipating continued demand supported in part by growth in healthcare employment. The company highlighted plans to expand into new international markets, prioritize growth opportunities across its businesses, and continue its stock buyback program. For fiscal 2026, FIGS expects net revenue to grow 10% to 12%, with improving profitability targets. Analysts reacted favorably after the earnings, producing a string of upgrades and higher targets. 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 raised its target to $15 from $9. FIGS Stock Pushes Past Price Targets FIGS' strong earnings clearly helped propel the stock to four-year highs. Shares began climbing before the Q4 report, jumping nearly 14% in the session ahead of the release. After the results, the rally accelerated: 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, roughly 30% higher than the average 12-month price target of $12.25 based on 10 analyst reports. That level exceeds Morgan Stanley's January $8 target and is at or slightly above the highest reported target of $17 from KeyCorp. The gap between bullish analyst commentary and lower aggregate 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. Investors are clearly applauding the turnaround, but skepticism remains about how much further the stock can run before a pullback or consolidation occurs.
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