Sherwin-Williams downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo last night downgraded Sherwin-Williams (SHW) to Equal Weight from Overweight with a price target of $365, down from $410. The firm believes the company’s volume pressure will be more pronounced relative to RPM (RPM) and PPG Industries (PPG). The war in Iran has led to “broad-based” inflation across most commodity chains, flowing down to coatings raw materials, the analyst tells investors in a research note. Wells says that in addition to margin pressure from the higher costs, sales results for coatings names will be pressured by a tougher macro backdrop as affordability remains challenging. It cut estimates for Sherwin-Williams to reflect a more challenging outlook for U.S. housing and some pressure from higher raw material costs.