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Analysts’ Latest Recommendations for Sherwin-Williams

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Feb. 28 2017, Published 7:48 a.m. ET

Analysts’ recommendations for Sherwin-Williams

As of February 27, 2017, 21 brokerage firms were actively tracking Sherwin-Williams (SHW) stock. Among them, 57% of the analysts recommended the stock as a “buy,” 38% recommended the stock as a “hold,” and 5% recommended the stock as a “sell.”

Analysts’ consensus indicates a 12-month target price at $325.40. It implies a return potential of 4.9% from the closing price of $310.20 on February 27, 2017.

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Why there are more “buy” ratings

Sherwin-Williams reported good 4Q16 earnings and revenues that beat analysts’ expectations. The merger with Valspar (VAL) is in the final stages. It could have driven most analysts to recommend a “buy” for Sherwin-Williams.

Recommendations and targets

Below are some of the recommended target prices from well-known brokerage firms for Sherwin-Williams:

  • On February 7, 2017, Morgan Stanley (MS) announced a target price as $335. It implies a 12-month potential return of 8% compared to the closing price of $310.20 on February 27, 2017.
  • On January 30, 2017, Barclays (BCS) rated Sherwin-Williams as “neutral” with a target price of $310. As of February 27, Sherwin-Williams closed at $310.20 and traded on par with the target price.
  • On January 30, 2017, Credit Suisse (CS) announced Sherwin-Williams’ target price as $325.00. It implies a 12-month potential return of 4.8% compared to the closing price of $310.20 on February 27, 2017.

Notably, investors can indirectly hold Sherwin-Williams by investing in the Vanguard Materials ETF (VAW). VAW invested 3.0% of its portfolio in Sherwin-Williams as of February 27, 2017.

In the next part, we’ll look into Sherwin-Williams’ latest valuations.

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