Stifel Releases Outlook for Interface

Atlanta, GA, December 17, 2015—Analyst Stifel recently spent time with the leadership of Interface and released a report about its outlook for the company.

Though stock fell following Q3 results, which were down due to a flattening of orders, orders in the fourth quarter are up, and Stifel is bullish about Q4 results.

Interface has discussed a goal of achieving approximately 40% gross margins over an approximate three-year timeframe, and Stifel’s fiscal year estimate is that gross margins will come in at 37.8%.

With regard to the company’s residential Flor line, Stifel reports that the Flor stores have generally been profitable, but total marketing costs are elevated relative to the $45 million revenue run-rate. Stifel believes that Interface, under the Flor brand, will be testing with Home Depot in a limited number of stores and notes the product is already offered on Home Depot’s e-commerce platform.

Stifel’s target price for Interface is $24, based on 10x its 2016 EBITDA estimates.