BofA downgraded Figs to Underperform from Neutral with a price target of $4.50, down from $8.50. The firm thinks Covid caused a pull-forward in demand for scrubs, creating outsized growth and margins for Figs, and there is now a challenging sales environment for Figs due to a healthcare worker that is now squeezed by inflation and focused on spending on other areas instead of replenishing their uniforms, the analyst tells investors in a research note. The firm sees few catalysts for multiple expansion and sees better opportunity for upside elsewhere.
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Read More on FIGS:
- Short Report: Bearish positions reduced after contrasting C3.ai and Figs results
- GE upgraded, Vail Resorts downgraded: Wall Street’s top analyst calls
- Oppenheimer downgrades Figs to Perform on near-term challenges
- Figs downgraded to Perform from Outperform at Oppenheimer
- Figs price target lowered to $9 from $10 at Guggenheim
