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UPDATE: Morgan Stanley Raises PT on RPM International Following Q2 Results

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In a report published Thursday, Morgan Stanley analyst Charles Dan reiterated Overweight on RPM international, Inc. (NYSE: RPM), raising its price target to $42.00 from $41.00.

According to the report, following F2Q14 results the analysts are modestly raising estimates and raising price target to $42.00. They also outline a few of the ways that RPM could get to their $57 Bull Case valuation.

“RPM reported better-than-expected results yesterday, largely driven by continued strength in the company's exposure to US home improvement in the Consumer segment,” the report noted. “Better-than-expected margins in the Industrial segment also helped. Peers will be reporting their quarterly results over the next 2-6 weeks, and we expect to see that RPM's organic growth remains above-average.” The key value drivers included:

-”Global non-residential maintenance, US home improvement, and US non-residential construction are top end markets.” -“Falling raw materials will help gross margin expansion.” -”SG&A leverage from strong organic growth and acquisitions.” -”68% sales in North America – limited downside from EM macro.”

RPM closed Wednesday at $42.66 with shares trading up 2.87 percent.

Latest Ratings for RPM

DateFirmActionFromTo
Jul 2014JP MorganMaintainsNeutral
Jul 2014Credit SuisseMaintainsOutperform
Apr 2014Wells FargoInitiates Coverage onOutperform

View More Analyst Ratings for RPM
View the Latest Analyst Ratings

Posted-In: Charles Dan Morgan StanleyAnalyst Color Price Target Analyst Ratings

 

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