Figs tumbles to record low as BofA turns bearish
02/04/2024 16:18
** Shares of Figs Inc FIG.N down 6.3% at $4.55, after
hitting record low on Tues, as BofA Global Research downgrades
healthcare apparel brand to "underperform" from "neutral"
** BofA chops PT from $8.50 to Street-low $4.50, per LSEG
** COVID caused a pull-forward in demand for scrubs,
creating outsized growth and margins for co, BofA analyst
Lorraine Hutchinson writes in note
** Healthcare worker now squeezed by inflation and focused
on spending on other areas vs replenishing uniforms, leading to
flat to MSD (mid-single-digit) growth outlook in 2024,
Hutchinson says
** FIGS now valued at 9x 2025 EV/EBITDA estimate, down from
15x 2024, and in line with comp set, she said
** 2 of 11 analysts rate FIGS "buy" or "strong buy", 7 rate
"hold" and 2 have "sell" recommendations and their median PT is
$6 - LSEG
** With move on the session, stock down 35% YTD
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))