Purple Innovation (PRPL) PT Lowered to $0.85 at UBS: Stock Overhangs Might Persist

UBS analyst Dan Silverstein lowered the price target on Purple Innovation (NASDAQ: PRPL) to $0.85 (from $1.00) while maintaining a Neutral rating.

The analyst commented, " PRPL is making healthy progress, but we expect some stock overhangs to persist. Overall, we think the event highlighted that PRPL has made meaningful progress over the last few quarters. It achieved FY'25/4Q results in line with its guidance originally issued over a year ago. Given the volatility in the bedding industry and the macro backdrop over that time period, we think it deserves credit for this. Moreover, its margin performance in 2H'25 and what's embedded in its 2026 outlook clearly show it can achieve positive EBITDA on $40m of monthly sales volume. Just a few years ago, its breakeven point was closer to $50m/month. Thus, PRPL should be well positioned to deliver profit dollar growth if sales continue to inflect. To this end, PRPL also expects to drive modestly positive cash flow this year."

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