Investors should load up on Figs shares, as the health care apparel name has already priced in much of the bad news around inflation, according to Raymond James. Analyst Rick B. Patel initiated coverage of Figs with a strong buy rating, saying note Wednesday that the company is better positioned to outperform in the second half. The stock is down 65% this year as many e-commerce brands have been dinged by rising interest rates. “We attribute much of the YTD stock decline to a 1Q22 Revenue & EBITDA miss and 2022 downward guidance revision – primarily due to industry supply chain issues (inventory delays), higher freight costs (margin pressure), and signs of consumer pressure from inflation (to a lesser extent),” Patel wrote. “With expectations reset lower, we like the setup as trends should improve in 2H on the timing of key new product launches and better inventory availability,” Patel added. Raymond James had a $15 price target on Figs. The new price target is about 80% above Wednesday’s closing price for the stock. The firm believes the direct-to-consumer company has several advantages, including robust margins and defensive characteristics against a recession. Figs is expected to expand revenues on a compound annual growth rate of 25% from 2021 to 2025 from new clients, as well as increase revenues per customer as the company expands its apparel line-up to “fully outfit” healthcare professionals. The firm believes Figs could also hold up in a recession, given that scrubs, lab coats and other garments are non-discretionary purchases for medical professionals. “We think valuation is attractive and also like its relatively defensive positioning amid macro uncertainty. Net, we believe expectations are low, the near-term setup appears de-risked, and its long-term potential remains intact,” the note continued. The firm also initiated coverage of six other digital commerce stocks that the analyst believed are oversold given their steep stock price declines. Etsy, Revolve, The RealReal, thredUP, Rent the Runway and Brilliant Earth were issued outperform ratings. Shares of Figs climbed more than 1% in Thursday premarket trading. —CNBC’s Michael Bloom contributed to this report.