On Friday, RPM International Inc. (NYSE:RPM), a chemical product manufacturer, received a positive update from Mizuho Securities as the firm raised its price target on the company's stock. The new target is set at $136, up from the previous $128, while the firm maintained a Buy rating for the stock.
The adjustment comes without any changes to forward estimates but reflects a shift in the near-term plus one year (NTM+1) earnings per share (EPS) projections, which are now set to $6.07 for the quarter ending February 2026, up from the earlier forecast of $5.96 for the quarter ending November 2025. This update is based on the rolling forward of the EPS estimates.
Mizuho's new price target implies a price-to-earnings (P/E) ratio of approximately 22.5 times, which aligns with the S&P Materials Index's average. This is noteworthy as it represents an increase from the previous target P/E ratio of around 21.5 times. The firm's analysis indicates that this target is consistent with the historical premium of RPM shares, which have traded at about a 10% premium over the past five years compared to the index.
RPM International has not provided any new company-specific information to prompt this adjustment. Instead, the revision is based on the firm's valuation methodology, which takes into account the company's earnings potential and its relative performance within the industry.
InvestingPro Insights
Following the recent price target update by Mizuho Securities, prospective and current investors in RPM International Inc. (NYSE:RPM) can gain further insights from InvestingPro data and tips. With a market capitalization of $14.39B and a strong track record of dividend consistency, RPM's financial health is a key aspect for shareholders. The company boasts a high shareholder yield and has impressively raised its dividend for 52 consecutive years, showcasing its commitment to returning value to its investors.
InvestingPro data highlights a P/E ratio of 27.33, which suggests that the stock is trading at a premium compared to near-term earnings growth. Despite this, the company's valuation implies a robust free cash flow yield. Additionally, RPM's stock has been known to exhibit low price volatility, which may appeal to investors seeking more stable equity investments. The company's dividend yield stands at 1.65%, with a recent 9.52% growth in its dividend, further underlining its attractiveness to dividend-focused portfolios.
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