Sherwin-Williams Gets Buy Rating from DA Davidson with $400 Price Target

DA Davidson has initiated coverage on Sherwin-Williams Co. () with a buy rating and a price target of $400.00, citing accelerating earnings driven by pricing actions, market share gains, and moderating selling, general, and administrative expenses.

The firm estimates that every 1% increase in Paint Stores Group pricing contributes approximately $0.03 to $0.04 to annual earnings per share, with potential for meaningful margin acceleration if raw material costs stabilize into 2027.

Sherwin-Williams faces tough comparisons over the next two quarters, but DA Davidson sees a potential beat-and-raise cycle into next year, aligning with broader analyst sentiment that has led to 18 analysts revising their earnings upwards for the upcoming period.

Other recent news includes Morgan Stanley raising its price target for Sherwin-Williams to $395 and Jefferies adjusting its price target to $375 after second-quarter earnings per share exceeded estimates, as well as Citi's analysis of US chemicals stocks identifying RPM International and Linde as among the most crowded long positions.