Why The Narrative Around Sherwin-Williams Is Shifting After Recent Analyst Updates and Sector Changes

Sherwin-Williams has seen a slight decrease in its Fair Value Estimate, down from $379.52 to $378.43, while the Discount Rate has edged up modestly. This nuanced adjustment reflects ongoing debates among analysts, with bullish perspectives balanced against persistent sector headwinds. Stay tuned to discover how you can track new insights and shifts that are shaping the future outlook for Sherwin-Williams.

Stay updated as the Fair Value for Sherwin-Williams shifts by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Sherwin-Williams.

What Wall Street Has Been Saying

Recent analyst commentary on Sherwin-Williams reflects a mix of cautious optimism and continued concern regarding macroeconomic and industry-specific challenges. Below is a summary of key takeaways from major Wall Street firms.

🐂 Bullish Takeaways

Mizuho increased its price target on Sherwin-Williams to $400 from $385, maintaining an Outperform rating. This upward revision highlights confidence in Sherwin-Williams's execution and the belief that competitive advantages and ongoing investments are positioning the company well for eventual recovery. Citi also raised its price target to $380 from $375 while reiterating a Neutral stance. Citi recognizes management's efforts but remains mindful of a still-challenging demand environment. Citi's commentary points to the company's consistent performance even as end-market volumes underperform sector averages.

🐻 Bearish Takeaways

BofA lowered its price target to $368 from $375, citing a "decidedly negative" macro backdrop and recent slippage in commodity businesses. The firm remains Neutral and points to inconsistent industrial end markets and the absence of expected seasonal strength. Jefferies, maintaining a Hold rating with a $370 price target, expects consensus estimates for the coming years to drift lower unless there is rapid relief in mortgage rates. Analyst Laurence Alexander notes that demand remains lackluster, and a pronounced rebound is unlikely without significant rate cuts and improved consumer confidence.

Overall, while some analysts acknowledge Sherwin-Williams's continued operational strengths and potential for share gains during recovery, reservations remain regarding near-term valuation, inconsistent end-market demand, and sector-wide headwinds. The range of price target adjustments underscores the divided outlook on the company's growth trajectory in the current environment.

Do your thoughts align with the Bull or Bear Analysts? Perhaps you think there's more to the story. Head to the Simply Wall St Community to discover more perspectives or begin writing your own Narrative!

Story Continues

NYSE:SHW Community Fair Values as at Oct 2025

What's in the News

Sherwin-Williams completed the repurchase of 2,050,000 shares between July and September 2025, with a total value of $723.86 million. This brings the overall number of shares repurchased since 2011 to 105,075,000, with a total value of $15,946.01 million. The company issued new guidance for the fourth quarter, projecting net sales growth in the low to mid-single digit percentage range. For the full year 2025, Sherwin-Williams forecasts consolidated net sales to increase by a low-single digit percentage. Diluted net income per share is expected to range from $10.16 to $10.36, including acquisition and restructuring costs. This compares to $10.55 per share reported for 2024.

How This Changes the Fair Value For Sherwin-Williams

The Fair Value Estimate has decreased slightly from $379.52 to $378.43. The Discount Rate has risen modestly from 7.57% to 7.61%. The Revenue Growth Expectation has declined marginally from 4.49% to 4.36%. The Net Profit Margin Forecast has fallen from 13.04% to 12.73%. The Future P/E Ratio has increased from 33.30x to 34.03x.

🔔 Never Miss an Update: Follow The Narrative

Narratives are a powerful way to invest smarter. Instead of looking at numbers alone, a Narrative lets you see the story behind a company’s financials by linking forecasts and fair value to real-world developments. Narratives on Simply Wall St’s Community page are easy to follow, continually updated as news breaks or earnings are released, and help you decide when a company looks under- or over-valued by comparing Fair Value with today’s price.

Read the full Narrative for Sherwin-Williams to get the complete picture here. Stay in the know on:

How Sherwin-Williams’s store expansion and growth strategies aim to capture more market share as conditions improve The impact of restructuring, new R&D investments, and expanding international operations on long-term earnings and competitiveness Ongoing demand headwinds, margin pressures, and how analysts’ revenue and profit forecasts compare to current fair value and stock price

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include SHW.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

View Comments