RPM International Inc (NYSE: RPM) saw its stock price surge 5.25% in intraday trading on Wednesday, despite facing several headwinds in its recently reported third quarter and receiving price target cuts from multiple analysts. The company's resilience in the face of challenges and its strategic moves appear to have resonated positively with investors.

During RPM's Q3 2025 earnings call, management addressed the impact of unfavorable weather conditions and tariffs on the company's performance. Frank Sullivan, Chairman and CEO, noted that the third quarter was affected by severe weather, particularly in the southern and western United States, which disrupted outdoor construction and project activity. However, he emphasized that the company's MAP 2025 initiatives and focus on repair and maintenance products have positioned RPM to outperform in challenging economic environments.

Investors seem to be looking past the near-term challenges and focusing on RPM's strategic moves. The company announced the acquisition of The Pink Stuff, a global leader in household cleaning products, which is expected to expand RPM's offerings in the cleaning space and strengthen its position in several sales channels, including e-commerce. This acquisition, along with new product introductions in the Consumer segment, such as the Mean Green refillable cleaner, appear to be driving optimism about future growth prospects.

Despite several analysts, including Wells Fargo, Deutsche Bank, and Morgan Stanley, cutting their price targets for RPM following the earnings report, the stock's strong performance suggests that investors are taking a more optimistic view of the company's future. The market seems to be pricing in potential benefits from RPM's strategic initiatives, acquisition strategy, and its ability to navigate challenging market conditions.