2023-05-24 08:49:18 ET
Sherwin-Williams ( NYSE: SHW ) on Wednesday was upgraded to Buy from a previous investment rating of Hold by analysts at Jefferies. They said the maker of paints and coatings is poised to expand its profit faster than other companies that make up the Standard & Poor’s 500 stock index ( SP500 ) as the housing market recovers.
“Sherwin-Williams’ ( SHW ) risk/reward appears more balanced, particularly on a relative basis,” Laurence Alexander, analyst at Jefferies, said in a May 25 report. “The housing cycle is turning: policy shocks that derail a recovery will likely have a much sharper impact on industrial and consumer goods companies.”
Jefferies raised its price target on Sherwin-Williams ( SHW ) to $275 a share from $240 a share, based on a price-to-earnings multiple of 26.5 times estimated EPS of $10.35 for 2025.
“We expect Sherwin-Williams’ ( SHW ) earnings to outpace the S&P 500 ( SP500 ) by at least 4%-5% over the next five years,” according to Jefferies. “Investments in retail network and customer support staff should continue, setting the groundwork for further share gains at the expense of regional competitors over the next cycle.”
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Sherwin-Williams upgraded to Buy at Jefferies on housing recovery