Sherwin-Williams Company (SHW – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Patrick Cunningham, CFA from Citi maintained a Buy rating on the stock and has a $423.00 price target.
Patrick Cunningham, CFA has given his Buy rating due to a combination of factors including Sherwin-Williams Company’s strategic acquisition of BASF’s Brazilian architectural paints business. This acquisition is expected to enhance Sherwin-Williams’ regional scale and presence in the Latin American market, particularly in Brazil, which is one of the largest markets for the company. The transaction, valued at $1.15 billion, is anticipated to close in the second half of 2025, pending regulatory approvals.
The acquisition is seen as a strategic fit due to the complementary nature of BASF’s Suvinil brand, which boasts a strong brand profile and extensive distribution network. Sherwin-Williams expects this move to accelerate sales and achieve cost synergies, maintaining its net leverage within the target range. Despite potential concerns about Sherwin-Williams’ current limited regional exposure, the expansion opportunity in Latin America is viewed positively, supporting the Buy rating.
According to TipRanks, Cunningham, CFA is a 2-star analyst with an average return of -0.4% and a 45.24% success rate. Cunningham, CFA covers the Basic Materials sector, focusing on stocks such as Huntsman, PPG Industries, and Ecolab.
In another report released on February 19, Berenberg Bank also maintained a Buy rating on the stock with a $418.00 price target.