RPM International Inc (RPM) saw its stock price plummet by 5.07% during Thursday's intraday trading session, as investors reacted to concerns about weak housing trends and raw material inflation. The sharp decline comes as analysts at RBC Capital Markets highlighted headwinds facing the specialty chemical company.

According to a note from RBC Capital Markets, RPM is grappling with challenges tied to soft demand in its Consumer segment and weakness in housing-related markets. The firm also pointed out that the company is facing middle-single-digit raw material inflation, with a projected $75 million impact. These factors have led RBC to maintain a sector perform rating on RPM while lowering its price target to $116 from $126.

Despite the current headwinds, RPM has taken steps to improve efficiency by consolidating eight plants and reducing inventories. These measures have helped eliminate fixed costs and lift cash flow to $91.5 million, even with some transition costs. The company's operational improvement program, Margin Achievement Plan, is expected to yield more significant benefits in fiscal 2026. Additionally, RPM continues to pursue merger and acquisition opportunities, recently announcing plans to acquire The Pink Stuff at what RBC called a discounted multiple with attractive margins.