BoA cuts FY2009 estimate on RPM

04 October 2007 08:38  [Source: ICIS news]

MUMBAI (ICIS news)--Bank of America (BoA) on Thursday lowered its fiscal 2009 earnings estimate on RPM International due to a slow-down in non-residential construction and industrial markets, while maintaining its forecast for fiscal 2008.

The bank cut its 2009 earnings per share (EPS) estimate on the US-based coatings and sealants company to $1.88 (€1.33) from $1.90 and maintained its 2008 EPS estimate at $1.70.

"Slowing trends in non-residential construction and industrial markets will begin to impact organic growth in second half [ 2008]," the bank said.

The bank said its outlook for the next twelve months on the company was positive due to a healthy top-line and a slight cut in petrochemical raw material costs.

Risks to its call include a significant slowdown in the industrial production and construction, it said.

BoA maintained its "buy" rating and the price target at $28 per share.

Shares of the company closed down 3.05% at $23.55 on Wednesday on the New York Stock Exchange.

($1 = €0.71)

By: Isha Jha
+65 6780 4359

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