RPM International's Long-Term Contracts, Price Escalators Insulate from Middle East Uncertainty, RBC Says

MT Newswires Live
Apr 13

RPM International's (RPM) long-term contracts and price escalators help insulate it against near-term Middle East-related uncertainty, RBC Capital Markets analysts said in a note emailed Monday.

Analysts said that conflict stability could help drive RPM to the higher end of its fiscal Q4 EBIT guidance growth of between low-single digit and high-single digit, but a prolonged conflict could lead to the lower end.

RBC said that RPM's strong underlying quality, $100 million in annualized SG&A savings in fiscal Q3, and emphasis that its Middle East business accounts for less than 4% of sales, are "impressive."

Analysts raised the company's fiscal Q4 and fiscal 2026 earnings per share estimates to $1.81 and $5.45 from $1.73 and $5.15, respectively.

RBC has an outperform rating on the stock and increased its price target to $130 from $126.

Price: 107.34, Change: -1.86, Percent Change: -1.70

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