John Kernan, an analyst from TD Cowen, maintained the Hold rating on FIGS. The associated price target was raised to $8.00.
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John Kernan’s rating is based on a combination of factors that reflect both positive momentum and existing challenges for FIGS. The company has shown healthy growth in key areas such as average order value and international sales, which have contributed to a strong performance in the second quarter. However, despite these gains, there are concerns about the sustainability of this growth, particularly in terms of order frequency per active customer and net revenue per active customer, which have seen declines.
Additionally, while the management has raised its outlook for FY25, the guidance appears conservative, especially given the current momentum. The margin profile remains difficult to predict, with tariffs impacting costs and no planned pricing actions for FY25. Although there is potential for upside if sales growth can be sustained, the current challenges in modeling margins and the conservative guidance have led Kernan to maintain a Hold rating for FIGS.
According to TipRanks, Kernan is a 5-star analyst with an average return of 9.8% and a 54.53% success rate. Kernan covers the Consumer Cyclical sector, focusing on stocks such as Deckers Outdoor, Dick’s Sporting Goods, and Lululemon Athletica.
In another report released on August 4, Telsey Advisory also maintained a Hold rating on the stock with a $5.00 price target.