As previously reported, Wedbush analyst Seth Basham initiated coverage of Casper Sleep (CSPR) with a Neutral rating and $10 price target. The analyst sees potential for continued 20% revenue growth and sharp margin expansion near-term, but sees the company's long-term 15% operating margin targets as "aspirational." Casper's retail store economics appear solid at first glance, but his analysis indicates that retail stores are materially cannibalizing online sales, thereby extending the stores' payback period from two to five years. At the same time, higher partner retail stores sales growth dampens margins, he adds. Basham sees opportunity for cost leverage and lower product return rates, but ultimately sees a less efficient business than publicly traded profitable competitor, Purple Innovation (PRPL).