Raymond James Ups Interface to Strong Buy
Raymond James upgraded Interface (IFSIA) to strong buy from outperform, noting the company's shares have recently dropped in price.
Analyst Sam Darkatsh says Interface has fallen nearly 25% since early May, 10% over the past week. He says the move came amid an increase in the prevailing price of crude oil as well as the company's first quarter results, which slightly missed Street expectations. Although the company's primary raw material (nylon) is largely dependent on petro-chemical feedstocks, he doesn't believe there is any near term risk in further input cost inflation. He says April trends are robust, and he has more confidence in the second quarter. He sees 72 cents 2006 earnings per share (EPS) and 95 cents in 2007. He has a $15.50 stock price target.