Sherwin-Williams Set to Benefit When Demand Recovers, Near-Term Improvement Unlikely, BofA Says

MT Newswires Live10-28

Sherwin-Williams (SHW) should be well positioned when demand recovers, though a meaningful near-term improvement is unlikely as weak consumer demand and rising raw material costs pressure margins, BofA Securities said in a note Wednesday.

The company reported Q3 adjusted earnings per share of $3.63, above BofA's $3.48 estimate but below the $3.69 consensus estimate, the investment firm said.

BofA lowered its Q4 EPS estimate to $2.43 from $2.46, and raised its 2026 EPS estimate to $12.12 from $11.99 largely due to the Q3 beat.

Margins are set to stay under pressure from raw material inflation, which management expects to run at low to mid-single digits in 2027, as well as higher wages, software and healthcare costs, while its Suvinil brand drives about 70% of gross margin headwinds, it added.

BofA kept the company's neutral rating and cut its price target to $373 from $380.

Price: 320.81, Change: -5.20, Percent Change: -1.60

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