Citi analyst Patrick Cunningham downgraded Sherwin-Williams (SHW) to Neutral from Buy with a price target of $385, down from $405. The firm cites “suppressed housing dynamics” in the near-term with elevated mortgage rates and pushed-out Federal Reserve rate cuts for the downgrade. Citi sees few indicators to provide confidence in a material second half of 2025 U.S. housing market recovery. While Sherwin-Williams’ long-term share gains story is intact, the stock’s risk/reward is not favorable with few near-term catalysts, the analyst tells investors in a research note. The firm suggests waiting for a better entry point. Citi prefers RPM (RPM) in the near term given its greater exposure to non-residential construction and infrastructure trends.
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