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Analysts’ Consensus on RPM International

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Jan. 10 2018, Updated 1:20 p.m. ET

Analysts’ consensus on RPM International

Analysts’ consensus for RPM International (RPM) hasn’t changed since its fiscal 2Q18 earnings. For RPM International, 54% of the analysts recommended a “buy,” 46% recommended a “hold,” and none of the analysts recommended a “sell.”

Analysts’ consensus suggests that RPM International’s target price is $57.60, which implies a return potential of 7.60% from the closing price of $53.54 as of January 9, 2018. Analysts’ consensus rose from $56.70 to the current target price.

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Most analysts recommend a “buy” or “hold”

RPM International announced its fiscal 2Q18 earnings and managed to beat analysts’ estimates. It reported revenue of $1.32 billion—an increase of 10.5%. It reported EPS (earnings per share) of $0.70 including the tax benefit of $0.09 per share due to new federal tax legislation. RPM International made an upward revision to its earnings guidance. Now, it expects fiscal 2018 EPS of $3.00–$3.10 excluding tax benefits. As the growth story continues for RPM International with two acquisitions already made in fiscal 2018, it isn’t surprising that analysts are recommending to “buy” or “hold” the stock.

Individual brokerage firms’ recommendations

  • Robert W. Baird recommended a “hold” for RPM International stock with a target price of $56. It implies a potential return of 4.60% based on the closing price of $53.54 on January 9, 2018.
  • Royal Bank of Canada (RY) recommended a “hold” with a target price of $54. It implies a return potential of 0.90% over the closing price as of January 9, 2018.
  • Bank of America rated RPM International as “neutral.” It recommended a target price of $56, which implies a return potential of 4.60% from the closing price as of January 9, 2018.

Investors can hold RPM International indirectly by investing in the SPDR S&P Dividend ETF (SDY). SDY has invested 1.0% of its portfolio in RPM International. The fund’s other holdings include Target (TGT) and IBM (IBM) with weights of 1.90% and 1.70%, respectively, as of January 9, 2018.

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