RBC Capital Reaffirms Outlook on RPM International Amid Mixed Results

RBC Capital has kept its Outperform rating and $128 price target on RPM International stock, despite mixed first-quarter results. The company reported EBITDA of $405 million, slightly below RBC's estimate of $410 million and the Street's $407 million. However, earnings per share of $1.98 exceeded RBC's forecast of $1.95, driven by strong organic growth in the Performance Coatings Group and Consumer segments, as well as cost reductions and lower healthcare expenses.

RPM International guided second-quarter adjusted EBITDA growth to the low- to mid-single-digit percentage range, implying approximately $287 million, below the Street's $300 million estimate. The company also projected fiscal 2027 adjusted EBITDA growth in the mid-single-digit percentage range, with a midpoint of 5%, implying $1.295 billion versus the Street's $1.32 billion estimate.

The company will host an Investor Day on November 9, 2026, to update strategic priorities and outline its next operating improvement plan. Effective June 1, 2026, RPM International recast its financials to include certain Latin American businesses in the Performance Coatings Group, representing approximately $143 million in annual revenue, previously part of the Construction Products Group and Consumer segments.

In related news, Sherwin-Williams has drawn attention from several financial firms. BMO Capital reiterated an Outperform rating with a $405 price target, while Mizuho maintained an Outperform rating with a $396 price target. Wells Fargo kept an Equal Weight rating with a $360 price target, and KeyBanc initiated coverage with a Sector Weight rating and a $365 price target. DA Davidson began coverage with a Buy rating and a $400 price target, citing earnings growth and market share gains despite housing market challenges.