UBS downgrades SHW to Neutral, citing delayed housing recovery and modest 5% annual earnings growth through 2026.
UBS lowered its price target for Sherwin-Williams (SHW) to $330 from $385 and downgraded the stock to Neutral. The firm cited persistent U.S. housing market headwinds as a key factor limiting near-term earnings growth.
The analyst expects Sherwin-Williams to deliver about 5% annual earnings growth over the next two years, below prior expectations. A meaningful recovery is not anticipated before 2028, with risks from shifting business mix and potential leverage increases.
UBS sees no clear catalyst for a stock rebound in the medium term, warning of possible share re-rating risks.