Furniture Brands International Shares Jump After Analyst Upgrades Stock

NEW YORK (AP) — Furniture Brands International Inc. saw its shares jump in afternoon trading Thursday after a Credit Suisse analyst upgraded the stock on valuation.

The furniture maker’s shares advanced $1.22, or 5.7 percent, to $22.57 on the New York Stock Exchange, as trading volume more than doubled the stock’s daily average. The stock has traded in a 52-week range of $16.07 to $25.34.

In a note to investors, Credit Suisse analyst Ivy L. Zelman noted the stock has slid 9 percent since January, dipping below its fair value of $22 per share. Zelman upgraded the stock from “Underperform” to “Neutral,” despite the stock’s 8 percent underperformance compared to the sector and sluggish industry trends.

“Although we still expect the retail environment to remain challenging given rising interest rates and a slowing housing market, we believe Furniture Brands’ current valuation is more reflective of these headwinds after its recent slide.”

Zelman expects the stock to hit $24 within a year. She reaffirmed her per-share earnings estimates of $1.61 for 2013 and $1.90 for 2014.