Morgan Stanley has revised its price target for Figs (FIGS, Financial), raising it to $5 from the previous $4.25, while maintaining an Equal Weight rating on the stock. This adjustment reflects the firm's positive outlook owing to a more favorable economic environment and a reduction in tariffs from China. Additionally, the valuation methodologies have been updated to consider mid-year 2026 projections.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for FIGS Inc (FIGS, Financial) is $4.72 with a high estimate of $5.50 and a low estimate of $3.75. The average target implies an downside of 20.11% from the current price of $5.91. More detailed estimate data can be found on the FIGS Inc (FIGS) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, FIGS Inc's (FIGS, Financial) average brokerage recommendation is currently 3.1, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for FIGS Inc (FIGS, Financial) in one year is $7.46, suggesting a upside of 26.23% from the current price of $5.91. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the FIGS Inc (FIGS) Summary page.
FIGS Key Business Developments
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- FIGS Inc (FIGS, Financial) reported a 5% year-over-year increase in Q1 revenues, surpassing expectations.
- The company achieved a record average order value (AOV) of $119, indicating strong brand strength.
- FIGS Inc (FIGS) saw positive growth in the US market, driven by reactivation of lapsed customers.
- International sales increased by 16%, with strong performance in markets like Mexico, Europe, and the Middle East.
- The company maintains a strong balance sheet with $251.2 million in net cash equivalents and short-term investments.
Negative Points
- Gross margin contracted by 130 basis points to 67.6%, partly due to higher freight expenses.
- The company faces uncertainties due to recent tariffs, which could impact cost of goods sold.
- Selling expenses increased to 26.2% of net revenues, reflecting higher costs from a new fulfillment center.
- There is a potential for higher inventory growth in Q2 due to trade environment uncertainties.
- FIGS Inc (FIGS) anticipates a slowdown in trends in the second half of the year due to reduced promotional activities.