Baird analyst upgrades Sherwin-Williams
Analyst upgrades Sherwin-Williams on improving housing market, easing costs and Comex deal
NEW YORK (AP) -- A Baird Equity Research analyst upgraded his rating on Sherwin-Williams Co. to "Outperform" from "Market Perform" on Friday, indicating it's all coming up rose-colored for the paint maker
Sherwin-Williams, like most companies that make products for the home, has been under pressure due to the prolonged housing slump and uncertain economy. But with the housing market finally showing signs of improvement, Sherwin-Williams could see earnings outperformance for years to come, said analyst Ghansham Panjabi.
Other bright spots for the retailer: raw material costs are easing, and the company announced last November it was acquiring Consorcio Comex, a privately held Mexican paint company in an all-cash deal valued at about $2.34 billion, which will help the company in the long term, Panjabi said. The deal is still pending approval from Mexican regulators.
He raised his price target to $205 from $180.
Sherwin-Williams' stock rose $3.50, or 1.9 percent, to $189.58 in afternoon trading.
