UBS has increased its price target for Sherwin-Williams (SHW, Financial) from $398 to $410, while maintaining a Buy rating on the stock. According to the analyst, although tariff impacts are a concern, they might not be as severe as initially expected, potentially benefiting related downstream companies this quarter. At the same time, commodity markets are expected to face downward pressure driven by weaker demand trends.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Sherwin-Williams Co (SHW, Financial) is $383.30 with a high estimate of $420.00 and a low estimate of $261.34. The average target implies an upside of 10.78% from the current price of $346.00. More detailed estimate data can be found on the Sherwin-Williams Co (SHW) Forecast page.
Based on the consensus recommendation from 29 brokerage firms, Sherwin-Williams Co's (SHW, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sherwin-Williams Co (SHW, Financial) in one year is $313.05, suggesting a downside of 9.52% from the current price of $346. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sherwin-Williams Co (SHW) Summary page.
SHW Key Business Developments
Release Date: April 29, 2025
- Adjusted Earnings Per Share: Increased by 3.7% to $2.25 per share.
- Share Repurchases: $352 million invested in share repurchases.
- Dividend Increase: Dividend increased by 10%.
- Paint Stores Group Sales: Grew by a low single-digit percentage; price/mix up by mid-single digits, volume down low single digits.
- Segment Margin Expansion: Paint Stores Group margin expanded by 120 basis points to 18.4%.
- New Store Openings: 18 new stores opened in the quarter.
- Consumer Brands Group Sales: Within expected range; adjusted segment margin expanded to 21.3%.
- Performance Coatings Group Sales: Below expectations; adjusted segment margin decreased by 60 basis points to 16.5%.
- SG&A Expense: Decreased by a low single-digit percentage in Performance Coatings Group; down a mid-teens percentage in administrative functions.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Sherwin-Williams Co (SHW, Financial) reported a 3.7% increase in adjusted earnings per share to $2.25.
- The company expanded its gross margin and gross profit dollars, demonstrating effective cost management.
- Sherwin-Williams Co (SHW) increased its dividend by 10% and invested $352 million in share repurchases.
- The Paint Stores Group saw sales growth driven by a mid-single-digit increase in price/mix.
- The acquisition of Suvinil is expected to enhance the Consumer Brands Group, offering multiple profitable growth opportunities.
Negative Points
- Consolidated sales were within the guided range but offset by softness in two segments.
- Performance Coatings Group sales were below expectations, with declines in FX, price mix, and volume.
- Commercial and property maintenance sales remained under pressure due to weak commercial construction and delayed CapEx spending.
- The Consumer Brands Group experienced a sales decrease, partly due to unfavorable FX and soft DIY demand in North America.
- Sherwin-Williams Co (SHW) faces uncertainty in the market related to tariffs, which could impact raw material costs.
