On Wednesday, BMO Capital Markets sustained their positive stance on shares of RPM International Inc. (NYSE:RPM), maintaining an Outperform rating and a price target of $153.00.
BMO's analysis highlighted that RPM International surpassed earnings expectations for the second quarter, posting an earnings per share (EPS) of $1.39, which exceeded the consensus estimate of $1.34. This achievement was noted despite a one-time impact of $0.03-0.04 on earnings.
RPM International reported revenue and earnings growth in each of its segments, with year-over-year increases across the board. The company's performance was particularly noteworthy given the current challenges in the housing market, foreign exchange headwinds, and a slowdown in onshoring and construction activities.
While the guidance for the seasonally weaker third quarter was below market consensus, the narrowed forecast for the full year still places analyst expectations within the projected range. BMO's analyst pointed out that RPM's stock is likely to see an upward movement following these robust results, despite the tough economic environment.
The company's ability to deliver a strong performance in the face of adverse market conditions has been well-received, signaling potential gains for the stock.
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