KeyBanc Initiates Coverage on Sherwin-Williams with $365 Target
KeyBanc has initiated coverage on Sherwin-Williams Co. (no ticker given) with a Sector Weight rating and a price target of $365.00.
The research firm set a fair value of $365 for the shares, citing elevated multiples that it believes are deserved due to the company's strong U.S. architectural franchise through its Paint Stores Group and the currently depressed housing environment.
Sherwin-Williams' stock currently trades at a P/E ratio of 29.2, with InvestingPro data indicating that the shares are overvalued relative to their Fair Value estimate.
The firm noted that this marks the second year of lackluster earnings per share growth in the low-single-digit to mid-single-digit percentage range, which they attribute to a recovery in the U.S. housing market being constantly pushed back.