On Thursday, Roth/MKM maintained a Buy rating on shares of Purple Innovation (NASDAQ:PRPL) with a steady price target of $2.50. The firm's analyst highlighted several key points from a recent fireside chat with the company's management, which took place earlier in the week at the ROTH Conference.
The analyst pointed out that Purple Innovation is expanding its market share within the mattress category. Despite the bedding category experiencing cyclical lows, the company is identified as having several underappreciated sales growth drivers for the year 2024.
Furthermore, the expectation is set for Purple Innovation's margins to show a positive inflection in the second half of 2024. These factors combined have led to the analyst's positive outlook on the stock.
Previously, Purple Innovation's stock rating was upgraded to Buy from Neutral by Roth/MKM. The firm now considers the stock a top pick following the insights gained at the ROTH Conference.
In summary, the analyst's reiterated Buy rating and $2.50 price target reflect confidence in Purple Innovation's market position and potential for growth in the coming months, particularly with an anticipated improvement in margins towards the end of 2024.
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