Baird Sees Strong Earnings Potential, Upgrades RPM to Outperform

RPM International Inc. (NYSE:RPM) is included among the Dividend Kings List: Top 15 Stocks.

On March 4, Baird analyst Ghansham Panjabi upgraded RPM International Inc. (NYSE:RPM) to Outperform from Neutral. The analyst left the firm’s price target unchanged at $125. In a research note, the analyst said the company appears well positioned to deliver accelerating earnings growth in fiscal 2027 and the years that follow. He added that RPM has “outsized” operating leverage as macroeconomic conditions gradually improve through 2026.

Earlier this year, RPM announced that its Tremco Construction Products Group had signed a definitive agreement to acquire Kalzip GmbH. The business manufactures aluminum roofing and façade systems used in building envelopes. The acquisition is expected to strengthen Tremco CPG’s capabilities in building envelope solutions. It also brings a well-known brand recognized for high-performance architectural systems.

Kalzip is headquartered in Koblenz, Germany. The company focuses on lightweight, weather-resistant aluminum systems and generated about €75 million in net sales in 2024.RPM said the deal should expand Tremco CPG’s presence in markets such as Europe and India. It also creates an opportunity to introduce Kalzip’s systems to North America.

The transaction is expected to close in the fourth quarter of fiscal 2026, subject to customary conditions. CEO Andrew Leach and the current leadership team are expected to remain with the business.

RPM International Inc. (NYSE:RPM) operates through subsidiaries that specialize in coatings, sealants, building materials, and related services. The company reports its operations through three segments: Construction Products Group, Performance Coatings Group, and Consumer.

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