Analyst Vincent Andrews of Morgan Stanley maintained a Buy rating on Sherwin-Williams Company (SHW – Research Report), with a price target of $338.00.
Vincent Andrews has given his Buy rating due to a combination of factors that suggest positive momentum for Sherwin-Williams Company. The report indicates that weather conditions likely shifted approximately 2% of same-store sales from the first to the second quarter, while professional painters report a robust backlog that is expected to improve through 2025. Moreover, the closure of competitor stores and strategic divestments within the industry are seen as opportunities for Sherwin-Williams to bolster market share. The optimism among professionals surpasses pre-COVID levels, and housing market concerns remain marginal, which further supports the company’s growth prospects.
In addition, Andrews has raised the price target from $325 to $338 based on the increased confidence in Sherwin-Williams’ earnings forecasts for the year 2024, which are above consensus expectations. This confidence is bolstered by survey results that suggest a broad-based acceleration in professional paint demand across various segments, including remodeling, repair, commercial, and new construction, which are expected to drive revenue growth. Despite potential near-term volatility due to weather-related delays in sales, the analyst views any resultant sell-off as a buying opportunity, anticipating that the company will recover in subsequent quarters.
According to TipRanks, Andrews is a 4-star analyst with an average return of 4.9% and a 65.19% success rate. Andrews covers the Basic Materials sector, focusing on stocks such as Ecolab, Chemours Company, and Air Products and Chemicals.
In another report released on April 10, Citi also maintained a Buy rating on the stock with a $390.00 price target.
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Sherwin-Williams Company (SHW) Company Description:
Founded in 1866, Ohio-based The Sherwin-Williams Co. manufactures and sells paints, coatings and related products to professional, industrial, commercial, and retail customers. It operates through three segments including, The Americas Group, Consumer Brands Group, and Performance Coatings Group.
Read More on SHW:
- Sherwin-Williams Declares Dividend of $0.715 per Common Share
- Sherwin-Williams price target raised to $390 from $360 at Citi
- Sherwin-Williams price target raised to $380 from $341 at RBC Capital
- Sherwin-Williams management to meet virtually with Loop Capital
- Sherwin-Williams price target raised to $385 from $340 at BMO Capital
