Figs, which went public last month, garnered at least eight buy ratings and two holds, Bloomberg reported. Analysts are impressed with the company’s large total addressable market and its opportunities for growth.
Figs recently traded at $41.01, up 13%.
KeyBanc’s Edward Yruma gave the company an overweight rating and a $45 price target. “FIGS brought innovation, in terms of both product and marketing, to a sleepy yet large market,” he said, according to Bloomberg.
The company’s 19% margin, based on earnings before interest, taxes, depreciation and amortization, and its more than 30% revenue growth rate make Figs a very compelling story, Yruma said.
Morgan Stanley’s Lauren Schenk put Figs at equal weight, with a price target of $34.
“FIGS has disrupted a previously commoditized scrubs industry, building a premium, aspiration brand in early innings of market share gains,” she said, according to Bloomberg. But concern about the company's valuation keeps Morgan Stanley on the sidelines.
Cowen’s John Kernan has an outperform rating and a $43 price target. He likes the community generated by the Santa Monica, Calif., company's data-driven marketing and consumer engagement, Bloomberg reports.
Figs soared 46% to $32.11 in its first day of trading May 27. It has about 200 employees.
The company said it markets and sells 98% of its products through its digital platform, consisting of a website and mobile app, "to a rapidly growing community of loyal customers."
Figs’ offering is the first to sell directly to retail investors through Robinhood's online brokerage platform.