Update shared on 30 Oct 2025
Analysts have slightly reduced their price target for FIGS, lowering it from $6.74 to $6.74. The adjustment reflects steady business fundamentals and persistent confidence in the brand's strong positioning within the healthcare apparel market.
Analyst Commentary
Recent Wall Street commentary on FIGS highlights a mix of optimism and caution regarding the stock's outlook, growth potential, and valuation. Analysts have expressed confidence in the company's fundamentals, while also noting areas that warrant close watch.
Bullish Takeaways- Bullish analysts see continued strength in FIGS' brand positioning within the U.S. healthcare apparel market. This suggests robust demand trends and solid market share.
- Confidence is underscored by the company's debt-free balance sheet, which provides operational flexibility and financial stability moving forward.
- Expectations remain positive for FIGS' growth trajectory. Several firms believe recent momentum in the first half of 2025 could be sustained through the remainder of the year.
- Reduced discounting in the first half of 2025 led to better-than-expected results. Some view this as a sign of pricing power and disciplined execution.
- Some analysts are cautious about the stock's valuation. They suggest that much of the anticipated growth and competitive advantages may already be priced in.
- There are concerns that the outlook factors in some softness for the second half of the year as a result of fewer promotional activities. This could impact demand or revenue growth rates.
- While confidence in the business remains, persistent high valuation relative to peers leaves less room for near-term upside if the growth trajectory moderates.
What's in the News
- FIGS announced it will outfit over 150 healthcare professionals at the Milano Cortina 2026 Olympic and Paralympic Winter Games as part of its ongoing partnership with Team USA. This is the first time the Team USA Medical Team will be officially outfitted at a Winter Games, with a kit featuring specially designed scrubwear and accessories in the Team USA colors. The collection debuts FIBREx, a new lightweight and durable fabric innovation by FIGS. (Client Announcements)
- From April 1, 2025 to June 30, 2025, the company did not repurchase any shares under its buyback program. Previously, FIGS completed the repurchase of 9,872,547 shares, representing 5.83% of shares for $48.01 million since the buyback was announced in August 2024. (Buyback Tranche Update)
- FIGS updated its 2025 full-year earnings guidance and now expects net revenues growth in the low-single-digits compared to 2024. (Corporate Guidance, New/Confirmed)
Valuation Changes
- Fair Value Estimate has remained stable at $6.74, showing no change from the prior assessment.
- Discount Rate has decreased marginally from 8.50% to 8.48%.
- Revenue Growth projections are unchanged and hold steady at approximately 4.86%.
- Net Profit Margin is virtually unchanged and maintains at about 5.64%.
- Future P/E ratio has declined slightly from 33.72x to 33.71x.
Disclaimer
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