Why Figs Stock Was Bouncing Higher Today
An analyst maintained her bullish stance on the company following discussions with two executives.
By Eric Volkman
The prognosis for Figs (FIGS +6.44%) stock looked rather positive on Wednesday. Investors bought into the stock after an analyst reiterated her bullish take on the specialized workwear and accessories maker. In late-session action that day, Figs stock was up by more than 5%.
A fresh dose of optimism
That pundit was KeyBanc's Ashley Owens, who maintained her overweight (read: buy) recommendation on Figs with a price target of $19 per share -- a robust 63% above the stock's current level.
According to reports, Owens' latest take on Figs came after KeyBanc hosted meetings with the company's CFO, Sarah Oughtred, and senior vice president of investor relations, Tom Shaw. The analyst waxed positive on management's pronouncements of healthy client engagement and encouraging levels of customer retention.
She also wrote that the two executives spoke of low resistance to Figs' recent pricing actions, which reinforces her positive view of the company's brand potential.
The trend as a friend
Figs specializes in next-generation medical apparel in an age when the healthcare sector continues to grow, driven to no small degree by the aging of the U.S. population.
Given that, I'd personally favor investing directly in the sector's companies to take advantage of this, but Figs has its merits as a sideways play on the trend. It's well-managed, profitable, and has a relatively light debt load; given that, it's certainly worth considering for a buy.