Casper Sleep’s stock surges after Wedbush analyst turns bullish for the first time

Shares of Casper Sleep Inc. sprang 9.0% higher in premarket trading Monday, after the Wedbush analyst Seth Basham turned bullish for the first time on the mattress-in-a-box company, citing “attractive” valuation and a clear and balanced path forward between revenue growth and profitability. Basham raised his rating to outperform, after being at neutral since he started covering Casper in February 2020, after the stock went public earlier that month. He lifted his stock price target to $10.50 from $10.00. “[Casper Sleep] is in the early stages of capturing market share with its comprehensive focus on sleep and wellness, and its strong brand recognition and broadening product lines and distribution partners gives it the ability to convert more shoppers to customers,” Basham wrote in a note to clients. Of the nine analysts surveyed by FactSet, 6 now have the equivalent of buy ratings, one is at sell and two are at hold. The stock had tumbled 33.7% since closing at a one-year high of $10.62 on Feb. 17 through Friday, but was still up 14.5% year to date, while the S&P 500 has gained 11.3% this year.

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