Royal Bank Of Canada Has Lowered Expectations for RPM International (NYSE:RPM) Stock Price

Key Points

• Royal Bank of Canada lowered RPM International’s price target from $128 to $120 while maintaining an “outperform” rating, implying 23.62% upside from the stock’s $97.07 price.
• Analyst sentiment remains favorable: 12 analysts rate RPM a Buy and three rate it Hold, producing a “Moderate Buy” consensus and an average target of $125.23.
• RPM exceeded quarterly earnings expectations with $1.98 EPS versus $1.95 forecast and 4.8% year-over-year revenue growth, though housing weakness, softer demand and margin pressure remain risks.

RPM International (NYSE:RPM - Get Free Report) had its target price lowered by research analysts at Royal Bank Of Canada from $128.00 to $120.00 in a research note issued to investors on Wednesday, Benzinga reports. The brokerage presently has an "outperform" rating on the specialty chemicals company's stock. Royal Bank Of Canada's target price suggests a potential upside of 23.62% from the company's current price.

Several other research firms have also weighed in on RPM. Morgan Stanley cut their target price on RPM International from $117.00 to $114.00 and set an "equal weight" rating on the stock in a research note on Monday, September 28th. KeyCorp initiated coverage on shares of RPM International in a report on Friday, September 11th. They issued an "overweight" rating and a $123.00 target price on the stock. Wells Fargo & Company decreased their price target on shares of RPM International from $135.00 to $130.00 and set an "overweight" rating for the company in a report on Monday. BMO Capital Markets raised their price objective on RPM International from $143.00 to $151.00 and gave the stock an "outperform" rating in a research note on Thursday, July 23rd. Finally, Bank of America lifted their target price on RPM International from $129.00 to $130.00 and gave the stock a "buy" rating in a report on Thursday, July 23rd. Twelve research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $125.23.

RPM International Trading Down 1.3%

RPM traded down $1.24 during mid-day trading on Wednesday, reaching $97.07. The stock had a trading volume of 320,824 shares, compared to its average volume of 1,066,363. The stock has a market capitalization of $12.38 billion, a P/E ratio of 18.83, a P/E/G ratio of 1.95 and a beta of 1.05. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.16 and a current ratio of 1.68. The firm's fifty day simple moving average is $105.51 and its two-hundred day simple moving average is $104.59. RPM International has a 52 week low of $92.92 and a 52 week high of $121.78.

RPM International (NYSE:RPM - Get Free Report) last released its earnings results on Tuesday, October 6th. The specialty chemicals company reported $1.98 earnings per share for the quarter, topping analysts' consensus estimates of $1.95 by $0.03. RPM International had a return on equity of 22.45% and a net margin of 8.41%.The company had revenue of $2.22 billion during the quarter, compared to the consensus estimate of $2.22 billion. During the same quarter in the previous year, the company posted $1.88 earnings per share. The firm's quarterly revenue was up 4.8% on a year-over-year basis. On average, equities analysts predict that RPM International will post 5.96 EPS for the current year.

Institutional Inflows and Outflows

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

Key RPM International News

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

• Positive Sentiment: Quarterly earnings beat expectations: RPM reported adjusted earnings of $1.98 per share, above the $1.95 consensus estimate and up from $1.88 a year earlier. Revenue rose 4.8% year over year to $2.22 billion, in line with expectations. RPM International Q1 Earnings Top Estimates
• Positive Sentiment: Record operating performance and emerging-market growth: Adjusted EBITDA reached a record $405.5 million, with sales growth supported by emerging markets and strength in the Performance Coatings segment. Management maintained an upbeat tone on fiscal 2027 growth prospects. RPM Reports Record Fiscal 2027 First-Quarter Results
• Positive Sentiment: Cash returns could support the stock: Rising free cash flow, continued share buybacks and RPM’s track record of dividend growth reinforce its “Dividend King” profile. Shares also remain below recent analyst price targets, including Wells Fargo’s revised $130 target, despite its lower forecast. RPM International’s Dividend King Status Just Got Stronger
• Neutral Sentiment: Volteco acquisition adds a longer-term opportunity: RPM completed its acquisition of waterproofing specialist Volteco on October 1, potentially expanding its waterproofing portfolio, though the near-term earnings contribution is uncertain.
• Negative Sentiment: Housing and margin concerns remain: CEO Frank Sullivan warned that housing turnover is at a roughly 40-year low and is unlikely to improve soon. Softer DIY and construction demand, raw-material inflation, and anticipated first-half price-cost pressure could limit margins and offset some of the earnings momentum. RPM CEO Sounds Housing Alarm

About RPM International

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.

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