New York, NY, Oct. 2, 2013 -- Analyst Stifel Nicolaus has maintained its "hold" rating on Interface stock after hosting investor meetings with management.
Stifel noted that new commercial construction is expected to see double digit growth in 2013, but only 10% of Interface’s domestic revenues come from new commercial construction.
Nevertheless, Stifel said, Interface is taking share as carpet tile continues to take share from broadloom carpet. Interface has specifically seen share gains in government and hospitality this year and is posting 5-10% growth in a nominally up market, Stifel said.
Flor, the retail business, is a focus for investors, Stifel said, even though it only represents 4%. However, it's an area that Interface wants to grow the company is still trying to decide how fast to grow it next year.
Overseas, Stifel said, Europe is still a mixed bag but Interface should have its plant in Australia back online late this year or early next year. That plant was destroyed by fire.
Stifel said the stock is fairly valued given mid single digit revenue growth forecasts and uncertain growth in the U.S. and Europe.