Mizuho Securities analyst John Roberts CFA maintained a Buy rating on RPM International (RPM – Research Report) yesterday and set a price target of $140.00.
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John Roberts CFA has given his Buy rating due to a combination of factors, including RPM International’s strategic market positioning and growth prospects. The company is well-established in North America, focusing on products aligned with the re-shoring and infrastructure sectors, such as industrial floor coatings and flat roof maintenance. This focus minimizes its exposure to the more volatile housing market, as RPM has little involvement in house paint and its DIY segment is geared towards smaller projects like spray paint and sealants.
Additionally, RPM has demonstrated resilience in maintaining or gaining market share, as evidenced by recent performance compared to competitors like SHW, PPG, and AXTA. The company’s growth outlook is bolstered by its Margin Achievement Plans, which have historically led to above-market earnings growth and are poised to continue with future initiatives. The expected low single-digit increase in raw material costs and the ability to pass these through in pricing also support a positive outlook. The target price of $140 is based on a valuation of approximately 22 times the projected earnings per share, reflecting confidence in RPM’s strategic execution and market conditions.
In another report released on February 3, BMO Capital also maintained a Buy rating on the stock with a $154.00 price target.
Based on the recent corporate insider activity of 50 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RPM in relation to earlier this year.