11:37 AM EDT, 10/14/2025 (MT Newswires) -- RPM International's ( RPM ) productivity gains and top-line outperformance, even amid weak macro conditions, are expected to drive earnings leverage for the company, BofA Securities said in a Monday note.

"RPM has been able to deliver impressive organic and inorganic growth in a highly inconsistent macro backdrop," BofA Securities said. The company's organic growth averaged 3% in three of the last four quarters, "meaningfully outperforming" coatings peers, the investment firm added.

Cost headwinds in fiscal Q1 offset a bulk of RPM's 7.4% sales growth, but are temporary and expected to "fade through the year," BofA Securities said. The company's fiscal Q2 and 2026 outlook also imply an expected low-teens growth in H2 earnings before interest and taxes, the investment firm said.

BofA Securities upgraded RPM International ( RPM ) to buy from neutral, and raised its price target to $129 from $126.

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