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RPM International: Analysts’ Recommendations

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Analysts’ recommendations

The number of analysts tracking RPM International (RPM) has remained constant at 13. Among the analysts, 46% recommended a “buy,” 39% recommended a “hold,” and 15% recommended a “sell.” Analysts’ recommendations are widely followed in the investor community. The recommendations help investors track the stock price and make investment decisions.

Analysts’ consensus on RPM International indicates a target price of $66.80, which implies a return potential of 21.3% over the closing price as of January 10. RPM International reported disappointing earnings in the second quarter of fiscal 2019. A few analysts lowered RPM International’s target price. However, RPM International’s acquisition spree to maintain future growth is seen as a positive. Many analysts have recommended to “hold” the stock.

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Individual brokerages’ recommendations

  • Baird cut RPM International’s target price to $60 from the earlier recommendation of $65, which implies a potential return of ~9.0% based on its closing price on January 10.
  • RBC (RBC) cut RPM International’s target price to $59 from $66, which implies a return potential of 7.15% over the closing price as of January 10.
  • BMO Capital Markets recommended a “buy” for RPM International with a target price of $72, which implies a return potential of 30.8% over the closing price as of January 10.

Investors could hold RPM International indirectly through the Invesco S&P MidCap Low Volatility ETF (XMLV). XMLV has invested 1.0% of its portfolio in RPM International. The fund also provides exposure to Atmos Energy (ATO) and Maximus (MMS) with weights of 1.5% and 1.4%, respectively.

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