Purple Innovation reinstated with an Underperform at BofA

BofA analyst Curtis Nagle reinstated coverage of Purple Innovation with an Underperform rating and $4 price target following the announcement that Purple rejected an unsolicited offer by the company’s largest shareholder, Coliseum Capital Management to acquire it for $4.35 per share. The analyst is skeptical that Purple can return to above market growth and sees the stock’s valuation as unattractive. In addition, the company’s cost cutting margin tailwinds could fade this year, Nagle tells investors in a research note.