Citigroup Has Lowered Expectations for RPM International (NYSE:RPM) Stock Price

Key Points

• Citigroup lowered RPM International’s price target from $128 to $116 while maintaining a “buy” rating; the revised target implies approximately 18% upside from the prior close.
• Analyst sentiment remains broadly positive, with 12 buy ratings and three holds, producing a “moderate buy” consensus and average price target of $124.31.
• RPM recently exceeded quarterly EPS expectations, reporting $1.98 versus the $1.95 consensus, while revenue rose 4.8% year over year to $2.22 billion; however, weak housing, construction and DIY demand remain risks.

RPM International (NYSE:RPM - Get Free Report) had its price objective cut by equities researchers at Citigroup from $128.00 to $116.00 in a report released on Wednesday, Benzinga reports. The brokerage presently has a "buy" rating on the specialty chemicals company's stock. Citigroup's price target suggests a potential upside of 18.26% from the company's previous close.

A number of other research firms also recently commented on RPM. Wall Street Zen downgraded RPM International from a "buy" rating to a "hold" rating in a research report on Saturday, August 22nd. KeyCorp assumed coverage on RPM International in a research report on Friday, September 11th. They set an "overweight" rating and a $123.00 target price for the company. Weiss Ratings reissued a "hold (c)" rating on shares of RPM International in a report on Friday, July 24th. BMO Capital Markets upped their price target on shares of RPM International from $143.00 to $151.00 and gave the company an "outperform" rating in a research note on Thursday, July 23rd. Finally, Wells Fargo & Company lowered their price objective on shares of RPM International from $135.00 to $130.00 and set an "overweight" rating for the company in a research report on Monday. Twelve research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $124.31.

RPM International Price Performance

Shares of NYSE RPM traded down $0.22 during mid-day trading on Wednesday, reaching $98.09. The company's stock had a trading volume of 1,488,056 shares, compared to its average volume of 1,071,609. The stock has a fifty day moving average of $105.51 and a two-hundred day moving average of $104.59. The firm has a market capitalization of $12.51 billion, a PE ratio of 19.01, a P/E/G ratio of 1.95 and a beta of 1.05. RPM International has a 52 week low of $92.92 and a 52 week high of $121.78. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.68 and a quick ratio of 1.16.

RPM International (NYSE:RPM - Get Free Report) last announced its quarterly earnings data on Tuesday, October 6th. The specialty chemicals company reported $1.98 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.95 by $0.03. RPM International had a net margin of 8.41% and a return on equity of 22.45%. The business had revenue of $2.22 billion during the quarter, compared to analyst estimates of $2.22 billion. During the same period last year, the firm posted $1.88 EPS. The company's revenue was up 4.8% on a year-over-year basis. As a group, sell-side analysts anticipate that RPM International will post 5.96 EPS for the current fiscal year.

Institutional Investors Weigh In On RPM International

Several hedge funds have recently made changes to their positions in the company. Operose Advisors LLC purchased a new stake in RPM International in the second quarter worth about $26,000. Danske Bank A S bought a new stake in shares of RPM International in the 2nd quarter valued at about $47,000. Castleark Management LLC purchased a new stake in shares of RPM International in the 2nd quarter worth approximately $64,000. Commonwealth Retirement Investments LLC bought a new position in shares of RPM International during the fourth quarter valued at approximately $69,000. Finally, USA Financial Formulas purchased a new position in RPM International during the first quarter valued at approximately $67,000. 80.95% of the stock is currently owned by hedge funds and other institutional investors.

Key Stories Impacting RPM International

Here are the key news stories impacting RPM International this week:

• Positive Sentiment: Quarterly earnings beat expectations: RPM reported fiscal Q1 2027 adjusted EPS of $1.98, above the $1.95 consensus and up from $1.88 a year earlier. Revenue increased 4.8% year over year to $2.22 billion, while adjusted EBITDA reached a record $405.5 million. RPM Reports Record Fiscal 2027 First-Quarter Results
• Positive Sentiment: Growth and capital returns remain attractive: Emerging-market demand and strength in performance coatings helped drive sales growth. Rising free cash flow, ongoing buybacks and RPM’s dividend-growth record could support investor interest, particularly with the shares trading below most published analyst targets. RPM International’s Dividend King Status Just Got Stronger
• Positive Sentiment: FY2027 outlook remains constructive: Management continued to signal sales growth for the fiscal year, with margin improvement expected as pricing and cost actions offset earlier pressure from raw-material inflation.
• Neutral Sentiment: RBC remains bullish but lowered its target: Royal Bank of Canada cut its RPM price target from $128 to $120 while maintaining an “outperform” rating. The revised target still implies substantial potential appreciation from current levels. RPM International price target update
• Negative Sentiment: Housing and construction demand remain risks: The CEO said housing turnover is at a 40-year low and is unlikely to improve soon. Weak DIY activity, softer construction demand and near-term raw-material cost pressure could constrain growth and margins. RPM CEO Sounds Housing Alarm

RPM International Company Profile

RPM International Inc is a multinational manufacturer of specialty coatings, sealants, building materials and related products. The company serves the construction, industrial, automotive, marine and consumer markets through a portfolio of businesses that develop products for protecting, repairing, maintaining and enhancing surfaces and structures.

Its brands and businesses include Rust-Oleum consumer and industrial coatings, DAP caulks and sealants, Tremco and Euclid Chemical construction products, Carboline protective coatings, Stonhard seamless flooring systems and Flowcrete flooring products.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.