Axalta Coating price target raised to $27 from $22 at JPMorgan » 09:1305/2905/29/20
AXTA, PPG, SHW, RPM
JPMorgan analyst Jeffrey…
JPMorgan analyst Jeffrey Zekauskas raised the firm's price target on Axalta Coating Systems (AXTA) to $27 from $22 and keeps an Overweight rating on the shares. The cyclicality of the industrial economy in an environment of slowing growth and now contraction has worked against the earnings and the valuations of Axalta and PPG Industries (PPG), Zekauskas tells investors in a research note. However, the tables are now turning, as the recovery in the housing market may be delayed or come in "fits and starts" because of domestic recessionary conditions, and the auto market is poised for a "more durable and predictable" multi-year recovery, says the analyst. Zekauskas keeps Overweight ratings on Axalta and PPG and Neutral ratings on Sherwin-Williams (SHW) and RPM (RPM).
|Over a month ago|
RPM price target lowered to $80 from $90 at BMO Capital » 08:3904/0904/09/20
BMO Capital analyst John…
BMO Capital analyst John McNulty lowered the firm's price target on RPM to $80 from $90 but keeps an Outperform rating on the shares. The analyst notes that the company's Q3 earnings beat highlighted the significance and timeliness of its Map to Growth program, with the quarter also registering continued margin improvement and share gains in Consumer and Construction, which should help to offset further upcoming macro headwinds. McNulty is still cutting his 2020 EPS view to $3.03 from $3.34 and FY21 view to $3.18 from $4.20 to reflect RPM management's conservative guidance.
Fly Intel: Pre-market Movers » 09:0604/0804/08/20
EHTH, NVAX, PINS, UPS, FDX, RPM, SGH, GNMK, TLGT, AMC, HCAT, GLUU, IQ, W
Check out this morning's…
RPM suspends share buyback program » 06:4904/0804/08/20
"In March 2020,…
"In March 2020, subsequent to the end of the third quarter, we repurchased approximately $25 million of our common shares. This is in addition to the $300 million we repurchased during fiscal 2019 and the first three quarters of fiscal 2020, coupled with the $200 million cash redemption of our convertible notes in November of 2018. Given recent macroeconomic uncertainty resulting from the COVID-19 pandemic, we have suspended our share buyback program," stated CEO Sullivan.
RPM withdraws Q4, FY20 guidance » 06:4704/0804/08/20
"The fourth quarter…
"The fourth quarter is seasonally our strongest and was off to a good start in March, with consolidated sales up approximately 5% over the prior year. Many of our products are used for construction, maintenance and repair projects, which are deemed essential in many cases and are relatively recession resistant. A large number of our North American customers, such as those in construction and DIY home and hardware retail, are also considered essential and currently remain open for business. With people spending more time in their homes, there is potential for increased activity in DIY projects. Demand is strong for our professional and consumer cleaning and disinfectant brands, some of which are effective against Coronavirus. Raw material cost inflation seems to be moderating in a number of our key product categories. Our global supply chain remains strong, and our distribution and operations associates continue to work diligently to meet customer demand," stated CEO Sullivan. "However, like most companies, we expect our financial results to be impacted by the disruption and uncertainty COVID-19 is having on the global economy. As we cannot predict the duration or scope of the pandemic, the financial impact to our results cannot be reasonably estimated, but could be material. COVID-19 is also disrupting our ability to implement new initiatives under our restructuring program. While there are some activities that can be carried out virtually, many require a physical presence that is being hindered by limits on travel and access to facilities. Because of this, we will be extending the timeline for achieving our MAP to Growth goals. As markets stabilize and we gain more clarity into business conditions, we will communicate our new MAP to Growth timeline. According to current government projections, it appears that the crisis will reach its peak in April or May. This is a fluid situation, and the information available to us is rapidly changing. As of today, we anticipate that our consolidated fourth-quarter revenue will be down 10% to 15% year over year. This assumes that our strong March results are counterbalanced by sales drops in April and May of 15% to 20%. Given the uncertainties around this crisis, we are withdrawing our prior earnings guidance for the fourth quarter and full year of fiscal 2020. We continue to assess the situation and the long-term impact of COVID-19. In this environment, we are taking aggressive actions to manage cash flow by reducing working capital, capital expenditures and discretionary spending. The MAP to Growth program timing has been fortunate for us in this regard since we have improved margins and are starting to see the benefits of our working capital reduction program, resulting in improved cash flow this year. Additionally, we have significant liquidity and a strong balance sheet, which we anticipate will keep us in a solid financial position."
RPM reports Q3 adjusted EPS 23c, consensus 21c » 06:4504/0804/08/20
Reports Q3 revenue…
Reports Q3 revenue $1.17B, consensus $1.18B.
RPM price target lowered to $71 from $84 at Wells Fargo » 08:1403/2603/26/20
Wells Fargo analyst…
Wells Fargo analyst Michael Sison lowered the firm's price target on RPM to $71 from $84 and keeps an Overweight rating on the shares. The analyst also lowered his earnings outlook to reflect recessionary conditions.
RPM upgraded to Outperform from Sector Perform at RBC Capital » 06:2103/2603/26/20
RBC Capital analyst Arun…
RBC Capital analyst Arun Viswanathan upgraded RPM to Outperform from Sector Perform with a lower price target of $74, down from $77. The analyst sees an attractive risk-reward offered by the stock over the next 6-18 months, driven by an uptick in DIY projects, continued margin improvement thanks to moderating raw material costs, and global supply chain operations remaining strong.
RPM upgraded to Outperform from Sector Perform at RBC Capital » 05:5603/2603/26/20
RBC Capital analyst Arun…
RBC Capital analyst Arun Viswanathan upgraded RPM to Outperform from Sector Perform with a price target of $74, down from $77.
BofA ups three, cuts two U.S. Chemicals stocks after COVID sensitivity analysis » 07:5003/2303/23/20
AXTA, CE, PPG, RPM, WLK
BofA analyst Steve Byrne…
BofA analyst Steve Byrne conducted earnings sensitivity analyses on all the U.S. Chemicals stocks he covers to assess potential vulnerabilities from COVID-19 disruption, after which he upgraded Axalta Coating (AXTA) and Celanese (CE) to Buy from Neutral, raised PPG (PPG) to Neutral from Underperform, downgraded RPM (RPM) to Neutral from Buy and cut Westlake Chemical (WLK) to Underperform from Neutral.