Who said healthcare workers shouldn’t have high quality scrubs and uniforms that are similar to athleisure? Apparently, most of the entire healthcare apparel industry, at least until recently. Figs Inc. (FIGS) has been surging lately, as analysts begin initiating coverage on the stock. The stock had a recent IPO, on May 27, 2021. (See FIGS stock charts on TipRanks)

One analyst enthusiastic about the new company is Jason Helfstein of Oppenheimer & Co., who wrote that “As a technology-enabled DTC brand, FIGS is disrupting the $79B-plus healthcare apparel industry that has historically consisted of thousands of small brick & mortar retailers lacking a strong digital presence.”

Helfstein assigned a Buy rating on the stock, and declared a price target of $45. That was, however, just one day before FIGS rose by 17.06%. The share price currently stands at $42.61, thus Helfstein’s price target now reflects a potential 12-month upside of 5.61%.

The five-star rated analyst explained that Figs is expected to reshape the entire industry by creating the most prominent direct-to-consumer platform for healthcare apparel. He also mentioned that the company is already “highly profitable,” and has successfully targeted a mainly untapped and promising market.

The company acknowledges that 62% of its revenue is already generated by repeat consumers. Helfstein was encouraged by the fact that most Figs customers are between 18 and 35 years old, and as such may remain loyal to the brand, especially as they advance in careers and have more income to spend on the premium apparel.

The company was founded in 2013, and as of Monday has a $6 billion market capitalization.

On TipRanks, FIGS has an analyst rating consensus of Strong Buy, based on 8 Buy and 2 Hold ratings. The average analyst Figs price target is $41.00, which suggests a 12-month downside of 3.78%.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.