UPDATE: JP Morgan Raises PT on RPM International to $23

JP Morgan has published a research report on RPM International RPM and has raised the price target from $20 to $23 after the company reported strong 2Q sales. In the report, JP Morgan writes, "RPM's F2Q:12 (ended November) consolidated sales growth of 10.9% was supported by higher volumes (+5.1%), higher prices (+2.9%) and acquisitions (+3%). Consumer volume growth was particularly strong due to new product introductions and share gains, though segment operating profit declined year-over-year. RPM indicated that raw material costs remain high, particularly in TiO2, but with little new inflation. FIFO inventory accounting kept a lid on consumer gross margins. A new round of price increases on top of 3% higher prices year-to-date should lead to margin expansion in both the Consumer and Industrial segments in the second half of fiscal 2012. F2Q:12 EPS were flat at $0.38. EPS include a $0.04/share one-time benefit from an increase in equity ownership in Kemrock India to $36M, or 23% (previously 14.9%). It also includes a $0.03/share expense from the acquisition of Legend Brands water and fires restoration products and Grupo P&V fire protection products. We maintain our F2012 EPS estimate of $1.60 and our F2013 EPS forecast of $1.90." JP Morgan maintains its Neutral rating on RPM International, which is currently trading down $0.16 from yesterday's $23.53 closing price.