Interface Downgraded By Raymond James On Brexit Risks

Raymond James downgraded Interface, Inc. TILE to Underperform from Market Perform on Friday, as Britain voted to leave the EU.

Analysts started to worry about incremental competitive threats in the US and apparently overly-optimistic consensus expectations. Moreover, the Brexit poses additional risks to international demand for the company's highly discretionary products in the region, which will potentially drive share prices down.

"Our call is not just Brexit-related, however, as intensified domestic competition is also concerning. As detailed in our NEOCON brief, we find Mohawk and Shaw becoming increasingly aggressive at opening and mid-price points (largely "Main Street"), perhaps spurred by relative cost benefits given their advantages of being vertically integrated regarding fiber extrusion," analysts said in the note.

Raymond James kept its 2016 and 2017 adjusted EPS estimates steady at $1.00 and $1.18, respectively.

The stock traded down 10 percent at $15.47