Currently, there are 25 analysts covering Sherwin-Williams (SHW)—compared to 26 analysts during the second quarter. Among the 25 analysts, 64% of the analysts recommended a “buy,” 36% recommended a “hold,” and none of the analysts recommended a “sell.”
Analysts’ consensus on Sherwin-Williams indicates a target price of $469.64, which implies a return potential of 1.75% over the closing price of $461.6 as of September 25. The company reported strong earnings growth in the second quarter and beat analysts’ estimates. Sherwin-Williams raised its fiscal 2018 adjusted EPS guidance to $19.05–$19.35—compared to the earlier guidance of $18.35–$18.95. Due to Sherwin-Williams’s strong performance, analysts recommended the stock as a “hold” or “buy.”
Individual brokerage companies’ recommendations
- Raymond James (RJF) rated Sherwin-Williams as a “buy” and recommended a target price of $543, which implies a return potential of 17.6% over the closing price of $461.6 as of September 25.
- UBS (UBS) raised its target price for Sherwin-Williams to $455. However, the stock is already trading 1.5% above the recommended target price as of September 25.
- Credit Suisse (CS) raised its target price for Sherwin-Williams to $500, which implies a return potential of 8.3% over the closing price as of September 25.
Investors could invest in the iShares U.S. Home Construction ETF (ITB) to hold Sherwin-Williams indirectly. ITB has invested 2.9% of its portfolio in Sherwin-Williams as of September 25.