Purple Innovation price target lowered to $1.50 from $2 at Craig-Hallum

Craig-Hallum analyst Jeremy Hamblin lowered the firm’s price target on Purple Innovation to $1.50 from $2 and keeps a Hold rating on the shares. The firm notes Purple delivered another quarter of mixed results, with a sales miss but an impressive beat on gross margin as production efficiencies have been gained along with supply chain improvements driving solid upside and allowing adjusted EBITDA to beat consensus estimates despite the sales miss. However, FY24 revenue guidance was lowered by $50M at the midpoint as industry trends deteriorated in the second half of the year of Q2 with weakness continuing to start Q3.