Sherwin-Williams Maintains Solid Demand Momentum with Unchanged Price Target
Morgan Stanley analyst Vincent Andrews has maintained a Buy rating on Sherwin-Williams Company, citing robust demand and pricing power. The company's June Paint & Wallpaper sales showed double-digit growth year over year, even after adjusting for calendar effects. This is seen as a key indicator of underlying demand, which Andrews believes will continue to drive Sherwin-Williams' success.
Andrews notes that while the company's same-store sales have lagged this proxy in recent quarters, he views this as timing-related to the implementation of price increases in response to raw material inflation. Management remains confident about competitive positioning, and the industry is broadly supporting higher pricing. Operational performance also remains solid.
BMO Capital has also reiterated a Buy rating on Sherwin-Williams with a $405 price target, echoing Andrews' sentiments on the company's demand and pricing power.