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Analyst Cut Sherwin-Williams’s Target Price but Stay Positive

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Analysts’ consensus on Sherwin-Williams

Of the 26 analysts covering Sherwin-Williams, 69% recommend “buy,” 31% recommend “hold,” and none recommend “sell.” Over the past three months, analysts have been conservative and scaled down its target price from $460 to $445.60, which implies 15.9% growth from its May 23 closing price of $384.50. 

While SHW’s first-quarter EPS beat analysts’ estimate, its revenue missed their estimate. Also, Sherwin-Williams disappointed when it revised its EPS estimate for the current fiscal year, to $14.95–$15.45 from $15.35–$15.85. As a result, many analysts have reduced their target price but continue to be positive.

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Individual brokerage company recommendations

  • Deutsche Bank (DB) has cut Sherwin-Williams’s target price to $405, implying 5.3% growth based on its May 23 closing price of $384.50.
  • RBC (RY) has cut its target price for SHW to $470, implying 22.2% growth based on its May 23 closing price.
  • Barclays (BCS) has cut its target price for SHW to $420, implying 9.2% growth based on its May 23 closing price.

Investors seeking indirect exposure to Sherwin-Williams could consider the PowerShares DWA Industrials Momentum ETF (PRN), which has invested 4.0% of its portfolio in Sherwin-Williams.

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