KeyBanc Assumes Coverage on RPM International (RPM) at Buy; An Attractive Yield and Steady Businesses
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Price: $113.82 +0.43%
Rating Summary:
18 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
18 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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KeyBanc assumes coverage on RPM International (NYSE: RPM) with a Buy. PT $24.00 (from $27 - previous analyst’s price target)
KeyBanc analyst says, "Understanding the economic headwinds at hand, we view the Company as a lower risk investment (compared to other specialty chemical companies in our coverage universe) as its sales are dominated by the repair and maintenance markets and small ticket consumer products vs. highly cyclical markets, such as OEM industrial coatings and U.S. housing construction. In addition to its more favorable end markets, shares of RPM have an attractive dividend (a 4.6% yield at $18.27/share) that we believe will limit some of the downside risk relative to the overall market and its specialty chemical peers. We would expect the Company to increase its dividend in October for the 38th year in a row. Furthermore, RPM will utilize its cash flow not only for its dividend, but to also fund its historically successful small bolt-on acquisition strategy in order to help drive top-line growth. Even in the current environment, we view shares of RPM favorably." (KeyBanc lowers 2012E: $1.62 from $1.65)
For more ratings news on RPM International click here and for the rating history of RPM International click here.
Shares of RPM International closed at $18.83 yesterday.
KeyBanc analyst says, "Understanding the economic headwinds at hand, we view the Company as a lower risk investment (compared to other specialty chemical companies in our coverage universe) as its sales are dominated by the repair and maintenance markets and small ticket consumer products vs. highly cyclical markets, such as OEM industrial coatings and U.S. housing construction. In addition to its more favorable end markets, shares of RPM have an attractive dividend (a 4.6% yield at $18.27/share) that we believe will limit some of the downside risk relative to the overall market and its specialty chemical peers. We would expect the Company to increase its dividend in October for the 38th year in a row. Furthermore, RPM will utilize its cash flow not only for its dividend, but to also fund its historically successful small bolt-on acquisition strategy in order to help drive top-line growth. Even in the current environment, we view shares of RPM favorably." (KeyBanc lowers 2012E: $1.62 from $1.65)
For more ratings news on RPM International click here and for the rating history of RPM International click here.
Shares of RPM International closed at $18.83 yesterday.
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