Sherwin-Williams (SHW) PT Raised to $410 at KeyBanc
KeyBanc analyst Kenneth Zener raised the price target on Sherwin-Williams (NYSE: SHW) to $410.00 (from $400.00) while maintaining a Overweight rating.
The analyst commented, "Coming out of 2Q, the $0.14 increase to the 2024 EPS guidance surpassed more bearish expectations heading into the print and highlights the underlying strength of the SHW's portfolio. We think the latest guide is still more on the conservative side and expect at least one more raise this year. The 2Q results mostly surprised us by the strength of margins in the CBG segment (DIY paint, etc.), but also volumes did not disappoint. We see opportunity to revise CBG's long-term margins higher if the current level can be sustained. The Paint Stores Group (PSG) continues to shine with healthy volume and price contributions (+LSD) as market share gains continue. We expect more price to flow through in PSG in 2H24. Although the demand outlook for 2H remains cautious, 2Q demonstrated again SHW's ability to outperform competition in the pro architectural market. The DIY, commercial, and industrial markets remain key concerns near term. We are more constructive on the 2025 outlook, as volumes should provide a greater tailwind and further catalyze margin expansion in all three segments. We maintain our constructive stance on SHW and raise our price target to $410 from $400 on a higher 2025 estimate."