RPM International's (RPM) fiscal 2027 outlook has been hit by worsening inflation, RBC Capital Markets analysts said in a Tuesday note.

For fiscal 2027, RPM expects sales to rise in the mid-single-digit range year over year, compared with its prior outlook of 3% to 7% growth.

Analysts said the company's additional price increases and $75 million in selling, general and administrative expenses savings should help meet its fiscal 2027 EBITDA guidance.

RBC said that the company's peers, such as Sherwin-Williams (SHW), PPG Industries (PPG), and Axalta Coating Systems (AXTA), are also expected to face inflationary pressures, but noted Sherwin-Williams' share gains and pricing should help offset those pressures.

Analysts said that the company is expected to benefit from favorable infrastructure exposure.

RBC maintained an outperform rating on the stock but lowered its price target to $120 from $128.

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