UPDATE: Morgan Stanley Initiates RPM International at Overweight on Organic Growth

Morgan Stanley initiated coverage on RPM International

with an Overweight rating and a $34 price target. Morgan Stanley commented, "RPM's discount to peers suggests a weak growth outlook, but in fact the company has exposure to attractive end-markets, such as US residential and non-residential construction, and we expect organic growth to meet or exceed that of peers. … How investors can win: 1) better-than-expected top-line growth; 2) accretive acquisitions that “move the needle” (~$2/share of value in our Base-case); 3) margin expansion via falling raw material costs and SG&A leverage." RPM International closed at $27.72 on Wednesday.