RBC Capital raised the firm’s price target on RPM to $126 from $120 and keeps a Sector Perform rating on the shares. The company posted a solid quarter, with improving margins from MAP 2025 and EPS growth from debt paydown, the analyst tells investors in a research note. Strength in infrastructure and R&R – repair and remodeling – continues to be somewhat offset by headwinds in DIY/residential, though RPM’s operational leverage is better with lower SG&A and unlocked capacity from operational improvement, RBC added, also boosting its assumed forward earnings multiple to 15-times from 14-times.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on RPM:
- Morning Movers: Humana plummets following reductions in Star ratings
- Options Volatility and Implied Earnings Moves Today, October 02, 2024
- RPM sees FY25 sales up in low-single-digit percentage range vs. last year
- RPM reports Q1 adjusted EPS $1.84, consensus $1.75
- RPM expects Q2 consolidated sales flat vs. prior year