What Happened?
Shares of healthcare apparel company Figs (NYSE: FIGS) jumped 5.7% in the afternoon session after several analysts raised their price targets for the company.
Barclays increased its price view to $9.00 from $7.00, BTIG raised its price target to $10.00 from $9.00, and Telsey Advisory Group lifted its target to $9.00. The positive adjustments from analysts followed a period where the company's performance exceeded expectations. During its third quarter, Figs' net revenue grew 8.2% to $151.7 million, which marked the company's strongest quarterly growth in two years.
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What Is The Market Telling Us
Figs’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 1 day ago when the stock gained 6.2% on the news that Barclays raised its price target for the company, and other analysts made similar positive adjustments. The bank lifted its price view to $9.00 from $7.00, though it kept its Equal-Weight rating on the shares. This move followed other firms that also grew more optimistic about the stock's potential. For instance, BTIG increased its price target to $10.00 from $9.00, and Telsey Advisory Group raised its target to $9.00. Adding to the positive backdrop, a report on the broader medical clothing market projected substantial growth, with the market expected to expand from $98.6 billion in 2024 to $173.2 billion by 2034.
Figs is up 72.8% since the beginning of the year, and at $10.18 per share, has set a new 52-week high. Investors who bought $1,000 worth of Figs’s shares at the IPO in May 2021 would now be looking at an investment worth $338.94.
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