UBS Maintains Buy Rating on Sherwin-Williams Company with $395 Price Target

UBS analyst Joshua Spector reiterated a Buy rating on Sherwin-Williams Company with a price target of $395.00. The company's shares opened at $365.93. Spector has a 3-star rating and a 52.82% success rate. Evercore ISI also gave Sherwin-Williams a Buy rating, while Citi maintained a Hold rating. The company reported Q2 revenue of $6.31 billion and a net profit of $754.7 million, compared to $6.27 billion and $889.9 million last year. Corporate insider sentiment is negative, with 73 insiders selling shares over the past quarter.

Sherwin-Williams Company (SHW) reported its second-quarter 2025 earnings, with mixed signals from the market and analysts. The company's shares opened at $365.93, following UBS analyst Joshua Spector's reiteration of a Buy rating with a price target of $395.00. Spector, with a 3-star rating and a 52.82% success rate, maintains a positive outlook on SHW.

SHW's Q2 revenue of $6.31 billion and net profit of $754.7 million were compared to $6.27 billion and $889.9 million from the previous year. The company's net operating cash flow for the first six months of 2025 was $1.05 billion, with $1.27 billion returned to shareholders through dividends and stock repurchases. The company's authorization to buy back 32 million shares of its common stock through open market purchases was also noted.

However, the company's adjusted earnings per share of $3.38 missed the Zacks Consensus Estimate of $3.76. Segmental reviews showed mixed results, with the Paint Stores Group segment registering net sales of $3.70 billion, up around 2.3% year over year, and the Consumer Brands Group segment declining 4.1% year over year to $809.4 million. The Performance Coatings Group segment's net sales were flat, with increased sales from acquisitions offset by lower selling prices due to product mix.

Analyst ratings varied, with Evercore ISI giving SHW a Buy rating, while Citi maintained a Hold rating. Corporate insider sentiment is negative, with 73 insiders selling shares over the past quarter.

Since the earnings release, estimates have been broadly trending downward for SHW, with a Zacks Rank #4 (Sell) and an aggregate VGM Score of C. The stock is expected to have a below-average return in the next few months.

References:
[1] https://www.nasdaq.com/articles/sherwin-williams-shw-71-last-earnings-report-can-it-continue