Morgan Stanley Lifts Sherwin-Williams’ Target Price to $315Morgan Stanley raised their stock price forecast on Sherwin-Williams to $315 from $275 due to the confluence of solid first-quarter earnings results and continued momentum in HIRS/P&WP sales.
Morgan Stanley raised their stock price forecast on Sherwin-Williams to $315 from $275 due to the confluence of solid first-quarter earnings results and continued momentum in HIRS/P&WP sales.
The investment bank said they expect shares to trade well leading up to the June 8 investor day where it believes 2021 guidance will be raised and an attractive longer-term outlook will be provided.
Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
The leading global producer of paints and coatings for various architectural and industrial applications late last month reported first-quarter adjusted earnings of $2.06 a share, beating the Wall Street consensus estimate of $1.64 a share.
The largest seller of paints in the North American residential market said its sales jumped to $4.67 billion from $4.15 billion. That was higher than the market expectations of $4.52 billion.
“Increasing conviction in our above-consensus 2021/2022 Sherwin SSS/EPS forecasts following the results of our Fall 2021 contractor survey as well as other recent data points (HIRS/P&WP/PPI). Recent management commentary about customer backlog and market share gains also supportive,” noted Vincent Andrews, equity analyst at Morgan Stanley.
Sherwin-Williams’ shares rose over 16% so far this year.
Fourteen analysts who offered stock ratings for Sherwin-Williams in the last three months forecast the average price in 12 months at $302.93 with a high forecast of $325.00 and a low forecast of $282.97.
The average price target represents a 5.89% increase from the last price of $286.09. Of those 14 equity analysts, 11 rated “Buy”, three rated “Hold” and none rated “Sell”, according to Tipranks.
Morgan Stanley gave the bull-case scenario target price of $390 and the worst-case scenario forecast of $225.
“The step-up in-home renovation during COVID will continue post-COVID as discretionary spending is reallocated to the home. A COVID-inspired new paint cycle has begun which will transcend the do-it-yourself (DIY) frenzy of lockdown in the US / post-lockdown in the EU to a significant 2021 order book for do-it-for-me (DIFM) paint demand (i.e., 2021 base case SSS of 12.5%).
“Market share gains likely to continue due to superior service offering (outstanding employees, vertical integration/logistics, sophisticated online platform, 3,000 company-owned trucks for delivery) and digital/data analytics. Significant pricing in 2021 likely sticky in 2022 when raw materials deflate.,” Morgan Stanley’s Andrews added.
Other equity analysts also recently updated their stock outlook. Sherwin-Williams had its price objective hoisted by BMO Capital Markets to $300 from $278. The firm presently has an “outperform” rating on the specialty chemicals company’s stock.
Moreover, Jefferies Financial Group reaffirmed a “hold” rating and set an $800 price target. Argus boosted their price target to $325 from $263 and gave the company a “buy” rating.
Check out FX Empire’s earnings calendar