RPM International stock price target raised to $152 by BMO Capital

Investing.com - BMO Capital raised its price target on RPM International (NYSE:RPM) to $152.00 from $140.00 on Friday, while maintaining an Outperform rating on the stock. According to InvestingPro data, five analysts have recently revised their earnings estimates upward for the upcoming period, with the stock showing strong momentum, gaining over 10% in the past week.

The firm cited RPM’s execution on its MAP 25 plan, differentiated business model with a strong labor force, and merger and acquisition strategy as key factors driving earnings per share growth despite challenging conditions in housing and industrial markets.

BMO noted that RPM demonstrated above-average top-line growth in its fiscal fourth quarter, which was reflected in the company’s 2026 guidance showing double-digit EPS growth despite rising raw material costs, tariffs, and soft housing market conditions.

The research firm expects additional MAP savings to continue benefiting RPM, along with a balance sheet and free cash flow positioned for more bolt-on acquisitions and a heightened focus on growth through cross-selling and more turnkey solutions.

RPM International, a specialty chemicals company that manufactures coatings, sealants, and building materials, has outperformed many peers due to its operational execution despite macroeconomic headwinds.

In other recent news, RPM International announced a quarterly cash dividend of $0.51 per share, continuing its impressive streak of 51 consecutive years of dividend increases. The company also completed the acquisition of Ready Seal Inc., a Texas-based manufacturer of premium exterior wood stains, to enhance its Rust-Oleum division. Ready Seal generated approximately $45 million in sales in 2024, though the financial terms of the acquisition were not disclosed. Analyst activity around RPM International has been notable, with BMO Capital raising its stock price target to $140 and maintaining an Outperform rating, citing a potential recovery in home sales and strong backlogs in construction and performance segments. Evercore ISI also reiterated an Outperform rating with a $145 price target, highlighting resilience in RPM’s construction segment and the positive impact of recent acquisitions. Additionally, Citi initiated coverage with a Buy rating and a $135 price target, pointing to RPM’s strong operating leverage and potential benefits from its MAP 2025 plan. These developments suggest a focus on strategic growth and operational efficiency for RPM International.

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