Purple Innovation price target lowered to $1 from $3 at Wedbush

Wedbush lowered the firm’s price target on Purple Innovation to $1 from $3 and keeps an Outperform rating on the shares. Purple’s Q3 revenue and EBITDA missed expectations by a sizeable degree while it reduced its FY23 sales and earnings guidance to a level that indicates weakness in Q4, the analyst tells investors in a research note. The company is struggling to execute on a monumental merchandise- and brand-transition plan, and is having to incur sizeable costs in order to meet retailer deadlines while industry volume expectations did not materialize, the firm argues.