RPM International, the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Jeffrey Zekauskas from J.P. Morgan upgraded the rating on the stock to a Buy and gave it a $115.00 price target.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Jeffrey Zekauskas has given his Buy rating due to a combination of factors that, in his view, make RPM’s current share price an attractive entry point despite near‑term earnings pressure. He acknowledges that fiscal 2026 earnings are likely to be flat or slightly down, driven by elevated SG&A costs, softer demand, and temporary headwinds such as government-related disruptions and early-stage restructuring expenses. However, he emphasizes that a meaningful portion of the earnings drag reflects transitory items—acquisition-related spending, duplicate restructuring costs, and overextended growth investments—that should abate as integration and cost actions progress.
At the same time, Zekauskas notes improving underlying indicators, including a rebound in organic growth late in the quarter, and highlights management’s plan to reduce sales-related spending and headcount, which should support margin recovery over time. He also points out that RPM has significantly underperformed the broader market over the past one and two years, leaving the stock trading at a discount to peers such as Sherwin-Williams and below its own historical valuation framework. His $115 price target, based on an F2027 EBITDA multiple roughly in line with RPM’s five-year average, implies room for multiple expansion and share price appreciation as end markets stabilize and the benefits of restructuring and acquisitions are realized.
In another report released today, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $118.00 price target.