Sherwin-Williams (SHW) PT Raised to $312 at Berenberg

Berenberg analyst Aron Ceccarelli raised the price target on Sherwin-Williams (NYSE: SHW) to $312.00 (from $261.00) while maintaining a Hold rating.

The analyst comments "Sherwin-Williams’ (Sherwin’s) Q2 results on 23 July demonstrated a solid sales rebound in its key Paint Stores Group (PSG) segment, after a rather uninspiring Q1. Moreover, positive signs have started to appear in its New Residential business (Q2 sales are up by a mid-single-digit percentage yoy), while it has continued to make market-shares gains in the Residential Repaints segment. Negative momentum in the North American DIY market is weighing on the FY24 revenue guidance for the group, with it now being lowered to “up to a low-single-digit percentage” from “up to a low- to midsingle-digit percentage”. However, Sherwin’s strong gross margin expansion and more controlled increase in SG&A versus a year ago allowed for an adjusted-EPS guidance raise, with it now expecting $11.10-11.40 (versus $10.85-11.35 previously; Visible Alpha consensus is at $11.51). We update our model and increase our price target to $312."

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