FIGS Stocks Jump 17%; Joining Top Brands Like Nike and Lululemon

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FIGS Stocks

Evanston, IL – June 22, 2021 – Fashionable medical scrub manufacturer soared nearly 17% after Wall Street analysts began coverage of the stock. Following the huge surge, analysts are now placing FIGS Stocks in the same category as other athleisure names like Nike, Inc. (NKE, 0.35%) and Lululemon Althetica, Inc. (Lulu, 0.23%).

The rise in stock percentages comes hot off the company’s decision to go public back in May of this year. On this past Monday, shares rose 16.84% to close at $42.53. The stocks were originally priced at $22 at the time of the announcement.

Originated in 2013 by co-CEOs Heather Hasson and Trina Spear, FIGS is looking to transform the medical apparel industry. For both men and women, the company sells fitted scrubs that are made from its proprietary fabric called FIONx. The innovative fabric offers wearers a four-way stretch and contains anti-odor, anti-wrinkled, and moisture-wicking properties.

FIGS prides itself as a technology-enabled, direct-to-consumer brand that carved out a path of its own in the $79 billion-plus healthcare apparel industry that has historically consisted of thousands of small brick and mortar retailers that are lacking a strong digital presence, said Jason Helfstein, managing director of Oppenheimer in a recent statement.

Skewing towards a younger base, FIGS stocks are already highly profitable with 26% earnings before interest, taxes, depreciation, and amortization, or Editda, margin in fiscal 2020, Helfstein continued.

“There’s a long runway for growth, given ample room for US/international market expansion and early stage development of FIGS’ lifestyle product offering.”

Helfstein launched coverage of FIGS with an outperform rating and a 12-18-month price target of $45.

A research analyst, John Hernan, who covers the retail and consumer brands industry for Cowen, reported that the American branch’s total market share is predicted to reach over $16 billion by the end of the 2025 fiscal year and over $19 billion by the end of 2030. Kernan also said he expects to see FIGS’ U.S. market grow to 6% by 2025 and to reach 9% by fiscal 2030.

Like Lululemon, Crocs, and Jordans, FIGS is a rare organization where its brand has “become a noun for the product that it represents,” said Edward Yruma, managing director of KeyBanc Capital Markets.

“We have learned that once you hit this tipping point, and in tandem with a commitment to innovation, financial results remain strong and prove to be durable,” said Yruma, who gave the stock an Overweight rating and a $45 price target.