Strong Market Position and Growth Potential: Vincent Andrews Recommends Buy Rating for Sherwin-Williams

Morgan Stanley analyst Vincent Andrews has maintained their bullish stance on SHW stock, giving a Buy rating on May 1.

Vincent Andrews has given his Buy rating due to a combination of factors that highlight Sherwin-Williams Company’s strong market position and future growth potential. The company’s Paint & Wallpaper sales showed a robust increase in March, indicating improved performance compared to earlier months, and aligning with company commentary about market outperformance in residential repaint. Despite some underperformance in same-store sales, Andrews believes this is likely due to data variability and notes that the two-year stack performance remains comparable.
Furthermore, Andrews maintains an Overweight view on Sherwin-Williams, citing that the company’s 2025 guidance remains achievable. He points out that the company has demonstrated flexibility in managing its spending, which could benefit from future macroeconomic conditions, such as lower interest rates. Additionally, Andrews anticipates that Sherwin-Williams will capture a larger market share once volume growth returns, with the potential for significant earnings per share growth. The completion of the SG&A reinvestment cycle is also seen as a positive, with evidence of returns on this investment, positioning Sherwin-Williams favorably in the market.

According to TipRanks, Andrews is a 4-star analyst with an average return of 4.8% and a 61.38% success rate. Andrews covers the Basic Materials sector, focusing on stocks such as Huntsman, Mosaic Co, and Sherwin-Williams Company.

In another report released on May 1, RBC Capital also maintained a Buy rating on the stock with a $420.00 price target.