KeyBanc Sets Target for Sherwin-Williams at $365 Amid Elevated Multiples

Financial services firm KeyBanc has initiated coverage on Sherwin-Williams Co. (no ticker mentioned) with a Sector Weight rating and a price target of $365.00.

The research firm believes that Sherwin-Williams' elevated multiples are justified by the company's strong U.S. architectural franchise through its Paint Stores Group, as well as the currently depressed housing environment.

KeyBanc noted that the stock currently trades at a P/E ratio of 29.2, which it considers overvalued relative to its Fair Value estimate.

Sherwin-Williams already holds a strong share in the North America paint stores market at approximately 40%, making continued share gains and store openings more difficult.