Purple Innovation

PRPL · NASDAQ

$2.41+$0.10 (+4.33%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $2.31

PRPL analyst rating

HoldConsensus of 2 analysts over the last 12 months. 0% rate it a buy.

Strong buy0
Buy0
Hold2
Underperform0
Sell0

12-month price target · 3 analysts

Average $25.50 (+958.1% upside)

Low: $25.25
Now: $2.41
High: $26.25

Upgrades and downgrades

The latest rating actions, newest first

PRPL analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
UBS	Apr 29, 2026	Maintains	Neutral	$0.85 → $0.65	0%
Keybanc	Apr 29, 2026	Downgrade	Overweight → Sector Weight	—	40%
UBS	Apr 1, 2026	Maintains	Neutral	$1.00 → $0.85	0%

The case for and against

Updated Nov 6, 2024

Bull case

Purple Innovation Inc has experienced an encouraging upward trajectory in both direct-to-consumer (DTC) and wholesale revenue, attributed to the successful launch of its new Premium and Luxe collections. The company’s wholesale revenue grew by 2.6% sequentially and 3% year-over-year, reflecting strong performance across various sales channels, including an increase in showroom revenue and the effective rollout of new products. Notably, management’s emphasis on improved sales and the potential for expanding retail partnerships indicates a robust growth outlook fueled by positive consumer response and effective product strategy.

Bear case

Purple Innovation Inc. faces significant financial challenges as evidenced by a considerable decline in gross margins, which fell from 41.5% in 3Q22 to 33.8% in 3Q23, largely due to discounts and costs related to product transitions. The company's management has lowered its 2023 revenue guidance to $510M-$520M, reflecting a year-over-year decline of 9.7% to 11.4%, and expects an adjusted EBITDA loss of $65M to $55M, indicating continued operational weakness. Furthermore, adjusted operating margins have worsened dramatically, decreasing by 2,110 basis points to -16.2%, highlighting increased marketing and general administrative expenses as a percentage of sales.

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