New York, April 9, 2007--Shares of Interface Inc, according to the April 9 edition of Barron's, could increase on revenue growth amid growing demand for carpet tiles in hotels, schools and medical centers as well as offices.
Analyst’s price targets for the company, according to Barron’, which closed Friday on Nasdaq ar $16.30, range from $20 to $22.
Barron's said that some expect Interface revenue to grow about 10 percent in the next year and a compound 25 percent over the next three years, according to Barron's which said more than 70 percent of Interface's $1 billion plus annual revenue comes from increasingly popular modular carpeting.
Barron’s said that carpet tiles can be cheaply and easily laid and easily cleaned and replaced. It said that aside from commercial and high end retailers Interface is increasingly attracting mass market retailers like Lowe's and other commercial businesses like education facilities and medical centers.
The Barron’s article said that the company’s shares went from $2 in 2002 to $16.30 now, but could reach $20-22 for several reasons, among them, the face that Interface CEO Dan Hendrix said he expects carpet tiles to double its 1/3 industry share by 2017. The article also said that Interface’s sales should increase 10% next year, and an aggregate 25% by 2010.
The article also noted that the company is paying down debt, from $500 million to $300 million currently and it’s focusing on reducing its debt to the range of $200 million.
Barron’s also stated that Interface’s market share in Europe is growing and that its current 16-18 P/E projections of $0.90-$1 per share could climb to $1.25-$1.30 per share or 12 P/E on profit growth.
