PRPL - Purple Innovation: The Prognosis After Much Uncertainty
- Purple Innovation, Inc.’s stock has fallen 80% since a fatal accident at one of its mattress manufacturing plants triggered a temporary shutdown from which it has not recovered.
- After lowering its FY21 Adj. EBITDA forecast from (pre-accident) $100 million to ~$10 million and its revenue estimate from $880 million to ~$720 million, the company’s CEO resigned.
- The company has an ambitious three-to-five year plan, a well-received new mattress, and significant insider buying despite abandonment by the analyst community.
- So who is right? A full investment analysis follows in the paragraphs below.
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Purple Innovation: The Prognosis After Much Uncertainty