BofA cuts RPM International stock price target on raw material costs By Investing.com

Investing.com – BofA Securities lowered its price target on (NYSE:RPM) to $125 from $128 while maintaining a Buy rating on the shares. The stock currently trades at $108.72, giving the specialty coatings company a market capitalization of $13.94 billion with a P/E ratio of 20.89.

The firm’s third-quarter fiscal results showed adjusted earnings per share of $0.57, ahead of BofA’s estimate of $0.33 per share. Organic growth reached 3% compared to the firm’s projection of 1.7%, aligning with the company’s revenue growth of 3.23% over the last twelve months.

Operating leverage improved during the quarter with incremental margins of approximately 30%, well above BofA’s estimate of 5%. The performance carried topline results through the financials, though selling, general and administrative expense savings remained marginal.

BofA noted the company benefited from sales deferred from the prior period during the seasonally soft quarter. The firm expects SG&A savings to increase over the next twelve months.

Raw material costs are expected to affect operating leverage in early fiscal 2027, according to BofA. The firm said RPM has demonstrated it possesses the appropriate product portfolio for the current market.

In other recent news, RPM International Inc. reported strong financial results for the third quarter of fiscal 2026. The company achieved earnings per share of $0.57, significantly surpassing the forecasted $0.35. Additionally, RPM International’s revenue reached $1.61 billion, exceeding the anticipated $1.55 billion. These figures highlight the company’s robust performance during the quarter. Investors and analysts had anticipated different results, making the actual outcomes noteworthy. The earnings and revenue results are crucial for investors evaluating the company’s financial health. No analyst upgrades or downgrades were reported in the recent news. RPM International’s performance in this period indicates a positive trend in its financial trajectory.

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