What Happened?
Shares of healthcare apparel company Figs (NYSE: FIGS) jumped 5% in the afternoon session after BTIG initiated coverage on the stock with a "Buy" rating and a $9.00 price target.
The firm's analyst, Robert Drbul, pointed to strong demand in the healthcare apparel sector as a reason for the positive outlook. This new rating represented a significant development for the healthcare apparel company, as it received fresh attention from market advisors. The initiation signaled confidence in the company's position within its industry.
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What Is The Market Telling Us
Figs’s shares are very volatile and have had 28 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 13 days ago when the stock gained 7.6% on the news that an analyst at Raymond James highlighted the company's positive momentum following meetings with management. The firm's analyst, Rick Patel, noted the positive tone of the meetings, which gave him greater optimism that the company's momentum from the first half of 2025 would continue into the second half. The company's own outlook had factored in some softness due to fewer promotions planned. However, the analyst pointed out to investors that reduced discounting in the first half of the year had already led to better-than-expected results. Despite the positive comments, the firm maintained its Market Perform rating on Figs' stock.
Figs is up 30.7% since the beginning of the year, and at $7.70 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 $256.36.
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