Purple Innovation price target raised to $2 from $1 at Craig-Hallum

Craig-Hallum raised the firm’s price target on Purple Innovation to $2 from $1 and keeps a Hold rating on the shares. The firm notes Purple delivered solid Q4 results that included in-line sales along with a lower-than-expected adjusted EBITDA loss. The initial FY24 outlook was modestly better than consensus estimates on sales and adjusted EBITDA. That said, Craig-Hallum viewed the Q1 outlook as somewhat disappointing given the company is lapping incredibly easy compares from last year and is forecasting a high-teens sequential slowdown from the Q4 level along with a wider adjusted EBITDA loss. The firm views the settlement agreement with Tempur Sealy as a modest positive.