BMO Capital analyst John McNulty has assigned their bullish stance on RPM stock, giving a Buy rating today.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
John McNulty’s rating is based on RPM International’s strategic investments and growth initiatives despite a challenging market environment. The company has managed to achieve solid revenue growth even amidst higher costs and a sluggish housing and construction sector. RPM is proactively investing in its sales and support staff, advertising, and mergers and acquisitions, positioning itself for a market recovery anticipated in the coming spring and summer.
Furthermore, RPM’s management is optimistic about continued growth, particularly in its construction segment, driven by its Tremco roofing and sealants business. Although higher costs have impacted margins, these are expected to improve as RPM benefits from pricing strategies, better fixed cost absorption, and volume growth. The anticipated relief in raw material costs and the benefits from their MAP 2025 initiative are also expected to drive robust earnings growth, which McNulty believes is currently undervalued by the market.
McNulty covers the Basic Materials sector, focusing on stocks such as DuPont de Nemours, Dow Inc, and Ingevity. According to TipRanks, McNulty has an average return of 2.5% and a 54.08% success rate on recommended stocks.
In another report released today, Wells Fargo also reiterated a Buy rating on the stock with a $145.00 price target.