RPM Stock Gets Upgraded To ‘Overweight’ At Wells Fargo After Q2 Earnings Beat: Retail Remains Extremely Bullish
By Stocktwits Inc | First Published Jan 8, 2025, 9:33 PM ISTRPM International is an Ohio-based company. Its subsidiaries manufacture and market specialty coatings, building materials, and sealants.
RPM International (RPM) received a ratings boost from analysts at Wells Fargo after the company’s November quarter revenue beat Street expectations.
However, the stock failed to sizzle as markets opened on Wednesday – it was flat in morning trade after the company’s outlook disappointed investors.
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RPM’s subsidiaries manufacture and market specialty coatings, building materials, and sealants.
The Ohio-based company reported earnings per share (EPS) of $1.39 for the quarter ended Nov. 30, beating an estimate of $1.34.
Revenue edged up 3% year-on-year to $1.85 billion, higher than the expected $1.79 billion.
Despite this, RPM stock declined for the second consecutive day as the company’s third-quarter guidance dampened investor sentiments.
The firm expects revenue to remain flat year-on-year in the third quarter and adjusted earnings before interest and tax (EBIT) to grow or decline by low single digits.
“We remain focused on things within our control in a mixed economic environment," said CEO Frank C Sullivan.
Despite the disappointing outlook, Wells Fargo analysts upgraded RPM stock to “Overweight,” according to TheFly. The brokerage raised its price target on the stock from $134 to $140, implying an upside of 15%.
Earlier in December, analysts at Evercore ISI raised their price target from $130 to $145 and reiterated an “Outperform” rating.
Retail sentiment on Stocktwits climbed further into the ‘extremely bullish’ (81/100) territory. Message volume was ‘extremely high’ (77/100) reflecting continued interest among retail investors.
One user posted a technical analysis of the stock, underlining their bull thesis.
RPM shares have surged over 14% over the past year.
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