Purple Innovation (PRPL) PT Lowered to $1.50 at Craig-Hallum

Craig-Hallum analyst Jeremy Hamblin lowered the price target on Purple Innovation (NASDAQ: PRPL) to $1.50 (from $2.00) while maintaining a Hold rating.

The analyst commented: "Purple delivered another quarter of mixed results with a sales miss but an impressive beat on GM as production efficiencies have been gained along with supply chain improvements driving solid upside and allowing Adj. 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 2H of Q2 with weakness continuing to start Q3. Adj. EBITDA loss guidance was maintained for FY24 due to the improved GM profile and a tightening of G&A costs. Management remains confident it will achieve positive Adj. EBITDA in Q4 which would be the first positive EBITDA quarter in more than two years and would better position the company to pursue refinancing options in 1H25 that should provide relief on interest payments. We are encouraged by the solid operational execution but remain concerned by weak industry trends that we believe are likely to linger well into 2025 and a weaker jobs market could result in another year of negative EBITDA. We maintain our Hold rating and lower our Price Target to $1.50."

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