Vincent Andrews, an analyst from Morgan Stanley, maintained the Hold rating on RPM International. The associated price target remains the same with $124.00.
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Vincent Andrews has given his Hold rating due to a combination of factors affecting RPM International’s financial outlook. The company’s first-quarter results exceeded expectations, with earnings per share surpassing previous estimates. However, while sales guidance for the second quarter and fiscal year 2026 is optimistic, with expectations of moderate growth, the earnings before interest and taxes (EBIT) projections are less favorable, falling at the lower end of the anticipated range.
Despite upward revisions in EBIT for the Performance and Consumer segments, these were counterbalanced by declines in the Construction Products segment and increased corporate expenses. Additionally, while there are positive factors such as reduced net interest expenses and a favorable effective tax rate, the overall financial picture is mixed, leading to a cautious stance. As a result, Andrews maintains a Hold rating, suggesting investors should neither buy nor sell the stock aggressively at this time.
Based on the recent corporate insider activity of 35 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RPM in relation to earlier this year.