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