Sherwin-Williams Company (SHW – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst yesterday. Analyst Michael Sison from Wells Fargo reiterated a Buy rating on the stock and has a $420.00 price target.
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Michael Sison has given his Buy rating due to a combination of factors including Sherwin-Williams’ strong pricing strategies and its ability to maintain sales growth despite challenges in the US housing market. The company is expected to outperform the industry through share gains and has strong potential for growth with a recovery in the housing sector. Additionally, Sherwin-Williams’ acquisition of BASF’s Brazil decorative paints business is anticipated to be accretive to earnings in 2026, further enhancing its growth prospects.
Moreover, the valuation of Sherwin-Williams at a price target of $420 is based on a 2026 estimated EV/EBITDA multiple, which, although high, is justified by the company’s consistent performance and strategic initiatives. The company’s focus on efficiency improvements and strategic growth through acquisitions positions it well for future success, making the risk/reward profile favorable for investors.
According to TipRanks, Sison is an analyst with an average return of -1.6% and a 42.36% success rate. Sison covers the Basic Materials sector, focusing on stocks such as Westlake Corporation, LyondellBasell, and Dow Inc.
In another report released on June 18, BMO Capital also maintained a Buy rating on the stock with a $410.00 price target.