Evercore ISI maintains Sherwin-Williams stock rating at outperform

Evercore ISI has retained its outperform rating for Sherwin-Williams (NYSE:SHW) stock, with a target price of $400.00 before the company's Q3 earnings report on October 27. The firm acknowledged the paint maker's pricing power and market position as key drivers of growth, notwithstanding declining sales volumes. Evercore ISI anticipates roughly 50% of the September paint stores group price hike to be realized.

The analyst highlighted that escalating oil and raw material costs could prompt another price increase in early 2027. Sherwin-Williams derives about 50% of its revenue from industrial and commercial segments. The firm forecasts double-digit EPS growth to reach $13.40 by 2027, independent of a recovery in the housing or home improvement sector.

Analysts view Sherwin-Williams as their top choice for exposure to a potential rebound in the 4% growth home improvement market, possibly in 2028. Separately, Home Depot reported a 1.7% year-over-year increase in comparable sales for Q2, maintaining its fiscal 2026 guidance for flat to 2% growth. Stifel issued a Hold rating on Home Depot with a price target of $346, based on an EV-to-2027 fiscal EBITDA estimate.

UBS also kept a Buy rating for Home Depot, with a target of $420 after speaking with executives. Stifel's W. Andrew Carter observed a slowdown in pricing trends at Home Depot, aside from Lowe's appliance pricing. Bank of America's building products analyst noted steady sales momentum at Home Depot during Q2. These updates represent ongoing analyses and forecasts from financial analysts on Home Depot's performance and standing in the market. This piece was created with AI assistance and edited by a human.