Analysts moved to a more favorable stance on FIGS after the company's fourth-quarter report showed a meaningful pickup in sales activity, a rise in active customers and stronger demand for its core scrubwear category.
Goldman Sachs re-rated the shares to Neutral from Sell and increased its 12-month price target to $14 from $7.50. Goldman noted that its earlier caution was tied to concerns about slowing U.S. revenue growth, pressure on margins and a perceived constrained total addressable market following the spike in demand during the pandemic. The bank said the most recent quarter provided evidence of expanding market share and an accelerating, broad-based recovery in business trends. Goldman highlighted the quarter's acceleration in sales, active customer growth and domestic scrubwear purchases as factors boosting confidence that revenue growth and margin expansion can be sustained.
KeyBanc also raised its view on the company, upgrading FIGS to Overweight from Sector Weight and assigning a $17 price target. KeyBanc pointed to the quarter's signs of accelerating active customers, rising average order values, improved in-stock levels and an increasing contribution from international markets. The firm noted that FIGS' initial fiscal 2026 guidance implies double-digit revenue growth alongside year-over-year expansion in EBITDA margins. KeyBanc framed the results as an inflection point beyond a post-pandemic normalization, underpinned by initiatives it identified as TEAMS, international expansion and product innovation.
Barclays followed with its own upgrade to Overweight, saying the fourth quarter represented a return to the company's core growth thesis. The bank cited a 33% year-over-year increase in revenue for the quarter, with strength across geographies and product categories. Barclays emphasized a favorable shift in the sales-to-inventory relationship, refreshed product assortments including new fabrics and extensions, and what it described as a reinvestment flywheel designed to drive growth in both domestic and international channels.
Taken together, the analyst commentary suggests the market is reassessing prior concerns that had weighed on FIGS after its 2021 initial public offering - specifically supply chain disruptions, aggressive promotional activity and tariff-related margin pressure. The recent quarter's data and company guidance appear to have persuaded several firms that FIGS has made progress past those near-term headwinds.
Contextual takeaways
- Multiple major brokerages upgraded FIGS following the quarter, adjusting price targets higher or moving to more positive ratings.
- Analysts cited accelerating active customers, higher average order values, improved inventory positions and international growth as reasons for increased conviction.
- Company guidance for fiscal 2026 and the quarter's results were referenced as evidence of potential revenue acceleration and margin improvement.
Note on limitations
This report reflects the analyst actions and company metrics described for the fourth quarter and initial fiscal 2026 guidance. It does not attempt to project outcomes beyond the information provided by those firms or by the company in its reported results and guidance.