Analysts’ recommendations for RPM International
As of April 13, 2017, 13 brokerage firms are actively tracking RPM International (RPM) stock. About 38% of these analysts have recommended a “buy” for the stock, while 62% of analysts have recommended a “hold.”
The analyst consensus indicates a 12-month target price for RPM at $56.20, which implies a return potential of 12.6% from its closing price of $49.94 on April 13, 2017.
Most analysts recommend a “hold”
RPM guided for lower earnings per share for fiscal 2017 during its fiscal 3Q17 results, which were announced on April 6, 2017. However, RPM revenues are expected to continue their growth as a result of the company’s acquisition strategy. Thus, the majority of analysts covering the stock recommend a “hold.”
Recommendations and targets by some well-known brokerage firms
Below are the recommended target prices from some well-known brokerage firms for RPM International:
- On February 14, 2017, Evercore rated RPM International a “buy” with a target price of $59, which implies a 12-month potential return of 18.1% over the April 13 closing price of $49.94.
- On December 5, 2016, BofA Merrill Lynch rated RPM International a “neutral” with a target price of $58, which implies a 12-month potential return of 16.1% over the April 13 closing price of $49.94.
Investors can indirectly hold RPM International by investing in the ProShares S&P MidCap 400 Dividend Aristocrats ETF (REGL), which invests 2.3% of its portfolio in RPM. The top holdings of the fund include Meredith (MDP), Aqua America (WTR), and Black Hills (BKH), which have weights of 2.5%, 2.4%, and 2.4% as of April 13, 2017, respectively.