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Sherwin-Williams: Wall Street Views and Recommendations

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Wall Street analysts consensus

As of October 16, 23 analysts are actively tracking Sherwin-Williams (SHW). Among them, 65% have recommended a “buy,” 35% have recommended a “hold,” and none have recommended a “sell.”

Analysts’ consensus target price for SHW in the past three months has been trending upward. In July, the recommended target price was $369.42. Analysts’ current target price for SHW now stands at $402.50, which implies a return potential of 4.8% from the closing price of $384.07 as of October 16.

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Most analysts stick to “buy”

The acquisition of Valspar has made SHW a stronger leader in paint and coatings. The acquisition is expected to achieve $320 million in selling, general, and administrative (SG&A), process, and efficiency synergies in the next three years. As a result, most analysts have recommended a “buy” for Sherwin-Williams.

Recommendations from individual brokerages

  • J.P. Morgan (JPM) has recommended a target price of $380. However, SHW is already trading 1.10% above the recommended target price as of October 16.
  • Baird rates SHW an “outperform” and has recommended a target price of $425, which implies a return potential of 10.70% from the closing price as of October 16.
  • Credit Suisse (CS) rated Sherwin-Williams an “outperform” and recommended a target price of $410. The target price implies a potential return of 6.75%—compared to the closing price of $384.07 as of October 16.
  • RBC (RY) recommends SHW with a target price of $423.00, implying a return potential of 10.10% from the closing price of $384.10 as of October 16.

Investors looking for indirect exposure to Sherwin-Williams can invest in the PowerShares DWA Industrials Momentum Portfolio (PRN), which has invested 4.70% of its portfolio in Sherwin-Williams as of October 16.

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