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Shares of American medical clothing company, Figs Inc (NYSE:FIGS) are up 6.05% in mid-day trading on Tuesday after Cowen raised their estimates on the stock and increased the company’s price target to $11.00 (from $6.00).
Analysts there wrote in a note “We are raising estimates above consensus sales and EPS into 2023 and 2024 based on our checks and margin recovery potential in 2H:23, though inventory +142% y/y creates uncertainty in modeling and Free Cash Flow timing through FY24. We model a path to $150MM in Free Cash Flow. Raising target to $11, which is 34x FY24E EPS, 2.6x sales.”
Management is guiding FY22 net sales to $495M with AOV pressured along with a deceleration in frequency, implying Q4:22 sales of $134M, representing +4% y/y sales growth. Cowen raised Q4 revenue estimates to +16%, which is still down from 25% growth in Q3. Q4 EPS estimate moves to $0.02 vs consensus of $0.01.
Cowen’s FY23 EPS estimate moves to $0.28 vs. the consensus of $0.15, and FY24 EPS estimates to $0.31 vs. the consensus of $0.21.
