KeyBanc Downgrades Sherwin-Williams (SHW) to Sector Weight

KeyBanc downgraded Sherwin-Williams (NYSE: SHW) from Overweight to Sector Weight and removed its price target. The change follows news it plans to acquire Valspar Corp. (NYSE: VAL).

Analyst Ivan M. Marcuse said, "While we like the acquisition of VAL from a strategic perspective, we believe SHW is paying a full price for it, transferring most of the near-term benefits to VAL’s shareholders. At the same time, SHW is taking on debt to finance the acquisition, increasing the leverage to north of 4x on a pro forma basis. Shares of SHW recently crossed our 12-month PT of $280, we see a balanced risk/ reward profile until the deal is closed and now rate SHW Sector Weight."

For an analyst ratings summary and ratings history on Sherwin-Williams click here. For more ratings news on Sherwin-Williams click here.

Shares of Sherwin-Williams closed at $288.69 yesterday.

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