Hour Loop downgraded to Hold from Buy at EF Hutton

EF Hutton analyst Michael Albanese downgraded Hour Loop to Hold from Buy with a price target of $2, down from $5. While the company has been growing sales rapidly, recent softness in e-commerce demand, coupled with inflationary pressures on its costs, have put pressure on growth and margins, the analyst tells investors in a research note. The firm now expects slower sales growth and a modest acceleration in profitably throughout the year. It would like to see a stabilization in gross and operating margins to build conviction that these pressures have subsided.