Figs Inc. (FIGS) to Remain Public Company; KeyBanc Reiterates Sector Weight Rating

KeyBanc analyst Ashley Owens reiterated a Sector Weight rating on Figs Inc. (NYSE: FIGS).

The analyst commented: "Story3 Buyout Offer Rejected; FIGS to Remain Public Company. Today, FIGS announced via a form 8-K that it has decided not to move forward with private equity firm Story3's $6 per share acquisition proposal, which valued the Company at over $1B, and remains confident in the Company’s standalone plan and prospects. Please see our note from November 14, 2024, for a breakdown of NT/MT strategy and growth opportunities. This decision comes just over a week after it was reported that leading shareholder, Ron Baron, opposed the takeover offer and instead plans to buy shares from Thomas Tull, another large shareholder, effectively bringing Baron's ownership to ~36%. Our Sector Weight rating remains unchanged.

At 13.4x EV/EBITDA and 1.4x EV/sales, we believe valuation is fair given the strong growth profile and large TAM. FIGS trades at 13.4x 2025E EV/EBITDA and 1.4x 2025E EV/sales. We compare this to 10.4x EV/EBITDA and 1.3x EV/sales for the Apparel & ECommerce brands peer group. FIGS closed at $6.12 on January 16, 2025."

For an analyst ratings summary and ratings history on Figs Inc. click here. For more ratings news on Figs Inc. click here.

Shares of Figs Inc. closed at $6.12 yesterday.

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