Figs stock price target raised to $5.20 from $4.80 at BofA Securities

Investing.com - BofA Securities raised its price target on Figs Inc. (NYSE:FIGS) to $5.20 from $4.80 on Friday, while maintaining an Underperform rating on the medical apparel company’s stock. The company, currently valued at $1.1 billion, has shown impressive gross profit margins of 67% and maintains a strong financial position with a current ratio of 3.96.

The firm increased its 2025 and 2026 EBITDA forecasts by 18% and 11% to $49.2 million and $51.0 million, respectively, reflecting Figs’ updated sales and EBITDA margin guidance. According to InvestingPro analysis, the stock is currently trading near its Fair Value, with 12 additional exclusive insights available to subscribers.

Figs raised its 2025 revenue outlook to low-single-digit growth from a previous forecast of low-single-digit decline, and increased its EBITDA margin guidance to 8.5-9% from 7.5-8.5%.

BofA Securities noted that positive sales trends continued quarter-to-date with no signs of softening consumer behavior, though management remains cautious about second-half sales performance.

The firm’s price target is based on 12x 2026 EV/EBITDA, with analysts expecting that a deceleration in sales and margin pressure in the second half of the year will limit multiple expansion for the stock.

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 doubled the forecasted $0.02. Additionally, Figs Inc. surpassed revenue predictions by reporting $152.6 million, compared to the anticipated $144.17 million. These results indicate strong performance in the recent quarter. Following the earnings announcement, the company’s stock experienced notable activity. Analyst firms have been closely monitoring these developments, reflecting a positive outlook on the company’s recent performance. These updates highlight significant financial achievements for Figs Inc.

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