Atlanta, GA, January 11—-Interface shares jumped Monday after SunTrust Robinson Humphrey boosted its rating to a "buy," citing the low stock price and cost-cutting at the company.
Shares of Atlanta-based Interface closed at $9.18, up $1.11 or 14 percent on the Nasdaq Stock Market.
In a research note Monday, SunTrust analyst Keith Hughes said investors shifted away from carpeting stocks at the start of the year after a good run in 2004, with flooring company Interface taking a bigger knock than most. The shares started the year just under $10.
"It's an interesting name that has just gotten clobbered in the last week and a half," said Hughes earlier Monday. "Lay on top of that that 2005 is going to be one of the better years for commercial carpet since 2000."
In the research note, Hughes said Interface's core commercial business was primed for 10 percent 2005 revenue growth after a fall in office vacancy rates in the fourth quarter that marked the biggest recovery since the 1990s.
Hughes said Interface still leads the field in the fastest growing commercial flooring product line -- carpet tile, which represents 62 percent of its annual revenue.
Hughes doesn't own any Interface shares. An affiliate has worked with Interface in an investment banking capacity in the last 12 months, and SunTrust makes a market in the stock.
