Goldman Sachs has revised its price target for Figs (FIGS, Financial) from $4.25 to $3.75, maintaining a Sell rating on the stock. This adjustment comes as part of a broader repositioning that reflects a more cautious view of the U.S. apparel and softlines sector amid a challenging economic backdrop.
The financial institution has also downgraded its U.S. GDP growth forecast significantly. It now predicts a GDP growth rate of just 0.5% for 2025, a sharp decline from the previous estimate of 2.5% for 2024, when measured on a quarter-over-quarter basis. Additionally, Goldman Sachs has increased the probability of a recession occurring to 45%.
While a complete economic downturn is not fully factored into their projections, Goldman Sachs identifies several looming risks that could impact earnings. These include recent market fluctuations, increasing geopolitical tensions, and higher tariff rates.
