Morgan Stanley analyst Vincent Andrews maintained a Buy rating on Sherwin-Williams Company (SHW – Research Report) today and set a price target of $385.00.
Vincent Andrews’s rating is based on a combination of factors that highlight Sherwin-Williams Company’s resilience and growth potential despite some current challenges. The company is seen as having strong earnings potential even at the low point of the housing cycle, and it possesses robust pricing power that can endure fluctuations in raw material costs and economic conditions. Additionally, Sherwin-Williams is positioned for significant market share growth, which aligns with Andrews’s “The Multiple” thesis.
Despite reducing the earnings per share estimates and price target due to tariff-related volume softness, particularly in the Consumer Brands and Performance Coatings segments, Andrews maintains an optimistic outlook. The company’s guidance, which was initially considered conservative, now appears achievable, suggesting a positive trajectory. Furthermore, as interest rates decline and housing markets improve, Sherwin-Williams is expected to capitalize on these conditions, potentially leading to a higher earnings multiple as it captures a larger market share.
In another report released on April 16, RBC Capital also maintained a Buy rating on the stock with a $410.00 price target.