Stifel Nicolaus Raises Estimates for Interface

Baltimore, MD, July 29, 2010--Analyst Stifel, Nicolaus & Co. is maintaining its "buy" rating on carpet maker Interface Inc. and has raised its estimates for the firm.

Stifel noted that in its latest quarterly report revenues increased 7.2%, well ahead of its 4.9% estimate. It now expects Interface to grow revenues 11% in the third quarter, much higher than its initial 3% estimate. It is also raising its earnings estimates for 2010 and 2011 to $0.51 and $0.65 from $0.47 and $0.60, respectively.

It noted that Interface's revenue growth was driven by improving demand in the corporate office sector globally, further penetration of the end market diversification strategy, and strong growth in emerging markets.

The only chink the the armor was a 3% sales decline at high-end broadloom maker Bentley Prince Street.