Morgan Stanley analyst Vincent Andrews maintained a Buy rating on Sherwin-Williams Company today and set a price target of $385.00.
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Vincent Andrews has given his Buy rating due to a combination of factors that suggest a positive outlook for Sherwin-Williams Company. Despite a recent underperformance in same-store sales, the company has shown resilience with a notable increase in Paint & Wallpaper sales, which were up by 7.4% year-over-year. This growth is potentially buoyed by a mid-season price increase, indicating strong pricing power.
Furthermore, Andrews highlights the strategic opportunities that lie ahead for Sherwin-Williams, such as gaining market share as competitors scale back their sales forces and implement price hikes. The anticipation of lower interest rates is expected to boost volume, enhancing the company’s earnings potential. Additionally, the reinvestment in SG&A is starting to yield returns, positioning Sherwin-Williams favorably in the market even as the housing sector remains sluggish. These factors collectively underpin Andrews’s confidence in the company’s future performance.
According to TipRanks, Andrews is a 4-star analyst with an average return of 3.9% and a 62.56% success rate. Andrews covers the Basic Materials sector, focusing on stocks such as Sherwin-Williams Company, Cf Industries Holdings, and Eastman Chemical.