Investing.com | Feb 22, 2023 18:32
By Michael Elkins
Truist Securities downgraded Interface (NASDAQ:TILE) to a Hold rating (from Buy) and cut the price target on the stock to $9.00 (from $13.00). 2023 EPS estimates were cut to $0.92 from $1.40 as Truist assumes the market will contract in 2023 and early 2024.
Analysts there wrote in a note, “Non-residential demand trends have been positive since mid-2021 on a recovery from COVID. While construction remains positive, we continue to see signs that the market will continue to weaken throughout 2023 as nonresidential markets continue to pull back from spending given economic fears.”
These trends are the primary driver of estimate cuts at Truist, including 4Q22 EPS estimates being cut to $0.24 (from $0.26).
They continued in the note, “The share gain in this product in the residential market has been well documented in what has been the biggest change ever in residential floor covering. LVT has now been gaining share in the non-residential market and has led to a resurgence in hard surface flooring in general. TILE has been one of the leaders in the carpet tile, but like all soft surface growth, has been impacted by share loss in recent years.” TILE has moved into LVT via sourced goods successfully, but it still is not additive to the fixed asset base around carpet tile.
Shares of TILE are down 22.80% in mid-day trading on Wednesday.
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Written By: Investing.com
