Wedbush downgrades Purple Innovation on slot loss at retailers

Wedbush analyst Seth Basham downgraded Purple Innovation to Neutral from Outperform with a price target of $1.10, down from $1.75. The firm says its “less favorable” recent channel checks indicate Purple is losing slots at key retailers. In addition, there is execution risk as the company retrenches further by consolidating mattress production to one single facility from three, the analyst tells investors in a research note. Wedbush continues to believe Purple’s path to a premium strategy is the right one and its gel grid technology remains “highly differentiated,” but moves to the sidelines “with risks mounting during a critical stage for the company.”