New York, NY, March 22, 2006--Shares of Interface Inc., fell yesterday on Tuesday after two brokers cut their ratings on the company over valuation concerns after a recent rally in its stock price.
Interface shares fell $0.72, to $13.35 on the Nasdaq. On Monday, the stock hit a 52-week high of $14.31 intraday, before retreating to $14.07 at the close. The stock is up about 51 percent so far this year.
"We believe that further outsized share appreciation will be more modest," Raymond James analyst Sam Darkatsh wrote in a client note. "The stock has now surpassed our prior $14 price target, and is up 40 percent during the past month."
The brokerage downgraded its opinion on Interface to "Outperform" from "Strong Buy."
Separately, Stifel Nicolaus also lowered its opinion on Interface to "Hold" from "Buy." Analyst John A. Baugh said the downgrade was purely for valuation, and not related to any fundamental changes in its outlook for the company.
