Discover why RPM International Inc. (NYSE:) is gaining attention in the market as Mizuho Securities raises its price target for the specialty coatings and building materials manufacturer. Find out how the company's recent performance and future outlook are shaping up for investors.
On Thursday, Mizuho Securities upgraded its stance on RPM International Inc., increasing its price target to $139.00 from $134.00. The firm maintains an Outperform rating for the stock, signaling a positive trajectory for its performance.
RPM International has provided guidance for the November quarter, anticipating a mid-single-digit percentage growth in earnings before interest and taxes (EBIT) compared to the previous year. This projection exceeds Mizuho Securities' earlier estimate of 3%. The company's adjusted earnings per share (EPS) for the August quarter surpassed expectations, coming in at $1.84, higher than both Mizuho's $1.73 estimate and the $1.75 consensus from Bloomberg.
Despite flat volume, RPM International saw a 6% year-over-year increase in overall adjusted EBIT, attributed to market-based pricing and stable raw material costs. However, the company has refrained from revising its full-year May 2025 outlook due to factors like weak consumer do-it-yourself (DIY) sales and uncertain residential OEM responses to interest rate cuts.
While the company remains cautious about market uncertainties, recent results indicate positive momentum. Analyst firms like RBC Capital, Seaport Global Securities, Wells Fargo, and BMO Capital have adjusted their price targets for RPM International based on financial performance and future earnings expectations.
Analysis
RPM International Inc. is receiving a positive outlook from Mizuho Securities, with an upgraded price target indicating favorable performance expectations. The company's recent financial results, including higher-than-expected earnings and strong adjusted EBIT growth, have garnered attention from analysts and investors.
Despite challenges in consumer sales and economic uncertainties, RPM International's consistent dividend history, robust financial health, and strong stock performance are key highlights. Investors seeking stable returns and growth prospects may find RPM International an attractive investment option.