Barclays raises Figs stock price target to $7 from $5 on strong Q2 results

Published 08/08/2025, 16:06
Barclays raises Figs stock price target to $7 from $5 on strong Q2 results

Investing.com - Barclays (LON:BARC) has raised its price target on Figs Inc. (NYSE:FIGS) to $7.00 from $5.00 while maintaining an Equalweight rating on the healthcare apparel company’s stock. The new target aligns with the high end of analyst estimates, as the stock currently trades at $6.10.

The price target increase follows Figs’ second-quarter 2025 results, which exceeded consensus expectations for both sales and adjusted EBITDA. The company maintains impressive gross profit margins of 67.3% and holds more cash than debt on its balance sheet, according to InvestingPro data.

Barclays noted that Figs achieved growth across all regions during the quarter, while simultaneously improving margins through reduced promotional activity and lower selling expenses.

The firm observed that positive revenue trends have continued into the third quarter of 2025 thus far, according to the company’s reporting.

Despite the ongoing strength, Barclays highlighted that Figs’ guidance indicates an expected moderation in growth due to the company’s continued restraint in promotional activities. The company maintains a healthy current ratio of 3.96, indicating strong liquidity to support its strategic initiatives.

In other recent news, Figs Inc. reported its second-quarter 2025 earnings, exceeding Wall Street expectations. The company achieved a diluted earnings per share of $0.04, which was double the forecasted $0.02. Additionally, Figs surpassed revenue predictions, posting $152.6 million compared to the anticipated $144.17 million. In another development, BofA Securities adjusted its price target for Figs, raising it to $5.20 from $4.80. Despite this increase, BofA Securities maintained an Underperform rating on the company’s stock. The firm also revised its 2025 and 2026 EBITDA forecasts, increasing them by 18% and 11%, respectively, due to updated sales and EBITDA margin guidance from Figs. These recent developments highlight significant financial and analytical insights for investors.

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