UPDATE: JPMorgan Downgrades RPM International (RPM) to Underweight on Relative Performance Risk
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JPMorgan analyst Jeffrey Zekauskas downgraded RPM International (NYSE: RPM) from Neutral to Underweight with a price target of $90.00.
The analyst comments "Our general view of the equities under our coverage is that we think there is more outperformance to be found in more cyclical equites than in less cyclical investments. We view RPM as a company with relative performance risk rather than absolute performance risk. RPM shares underperformed the market year-to-date, down (1%), with the general market up 13%. RPM is likely to contend with raw material, packaging, and logistics cost inflation in the upcoming two quarters, pressuring its gross margins. Announced price increases will take some time to catch up with cost inflation. Moreover, RPM is coming up against challenging volume comparisons in its Consumer Products businesses, which showed an unusually high level of growth during F2021 because of domestic demand strength from DIY home improvement projects. Accordingly, we think investors are uncertain over RPM’s normal or base line earnings."
Shares of RPM International closed at $89.83 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Downgrades, Hot Downgrades
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