Figs has a powerful story for investors who can look beyond the chaotic price volatility of the past two years, says Roth MKM. Analyst Matt Koranda has started coverage of his apparel stocks in Healthcare with a buy rating. His $9 price target on the stock suggests he could be up 32% from Tuesday’s close. “We expect the share price to work as FIGS demonstrates strong brand strength and drives multi-year earnings and margin improvements beyond 2024,” Coranda said in a note to clients on Wednesday. rice field. The stock rose 5.9% on Wednesday, taking his year-to-date gains to 7.7%. Coranda said the stock has been on a “rollercoaster” since the founder-led direct-to-consumer apparel company known for its scrubs for healthcare workers went public in May 2021. Nevertheless, he said 2022, where the business and brand are “healthy,” will be a tough year, and 2023 should be a year of transition. This year, he said, management will work to clear excess inventory accumulated during the period of his chain, backed up by his 2021 and early 2022 supply. Analysts say the outstanding backlog will allow Figs to focus on innovation and marketing to drive sales growth in 2024 and he in 2025. Figs also needs to moderate its operating costs in these years, he added. Coranda said the brand should be able to maintain its top market share among medical professionals by leveraging its reputable brands and leveraging its size. said to be essentially the first consumer-grade medical scrub brand when it was created. A weakening economic background. Indeed, Coranda said Figgs’ performance could be impacted by increased competition or the need to use excessive promotions to move inventory. Changes could also affect the Santa Monica, Calif.-based company, he said. — CNBC’s Michael Bloom contributed to this report.