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Investing.com - BofA Securities upgraded RPM International (NYSE:RPM) from Underperform to Neutral on Thursday, while raising its price target to $128.00 from $110.00. According to InvestingPro data, analyst targets for RPM range from $110 to $152, with the stock currently trading at $125.55.
The upgrade reflects BofA’s increased confidence in RPM’s ability to deliver better-than-sector-average organic growth. The company maintains a P/E ratio of 23.27, with five analysts recently revising their earnings estimates upward for the upcoming period.
BofA noted that RPM’s "hero brands" are generating enough growth to offset weakness in the company’s consumer business, resulting in strong consolidated performance.
The research firm expressed encouragement about RPM’s strategic shift back toward tuck-in acquisitions, which have historically complemented the company’s growth strategy effectively.
Following two successive Map 2 Growth initiatives, BofA has greater confidence in RPM’s capability to successfully integrate acquisitions and achieve cost synergies, which should drive improved value creation and returns.
In other recent news, RPM International has announced several notable developments. The company declared a quarterly dividend of $0.51 per share, continuing its impressive streak of increasing dividends for 51 consecutive years. This places RPM in a very exclusive group of U.S. companies with such a long-standing dividend increase history. Additionally, RPM International has acquired Ready Seal Inc., a Texas-based manufacturer known for its premium exterior wood stains, to enhance its Rust-Oleum division. Ready Seal generated approximately $45 million in sales in 2024, although financial details of the acquisition were not disclosed.
On the analyst front, BMO Capital has raised its price target for RPM International to $152, citing the company’s effective execution of its MAP 25 plan and robust merger and acquisition strategy. Evercore ISI also reiterated its Outperform rating with a $145 price target, noting the resilience of RPM’s construction segment and the positive impact of the TMPC acquisition. Despite challenges in the consumer segment, analysts see potential growth in the construction and performance sectors. These developments underscore RPM’s strategic efforts to navigate market challenges and leverage growth opportunities.
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