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.

Analyst Comments Analyst EPS View Downgrades

Longbow Research Downgrades Valspar (VAL) to NeutralMarch 22, 2016 11:36 AM UBS Raises Price Target on Sherwin-Williams (SHW) Ahead of Valspar Acquisition Conference Call March 21, 2016 8:49 AM Susquehanna Upgrades Sherwin-Williams (SHW) to PositiveMarch 21, 2016 7:40 AM RBC Capital Upgrades Valspar (VAL) to Sector PerformMarch 21, 2016 7:26 AM Deutsche Bank Downgrades Valspar (VAL) to HoldMarch 21, 2016 7:01 AM Sherwin-Williams (SHW) Enters Agreement ot Acquire Valspar (VAL) in ~$11.3B DealMarch 20, 2016 1:08 PM The Sherwin-Williams Company To Acquire Valspar For $113.00 Per Share In Cash Or $11.3 BillionMarch 20, 2016 1:00 PM