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Mizuho Adjusts Sherwin-Williams (SHW) Target Lower, Maintains Outperform
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The Sherwin-Williams Company (NYSE:SHW) is included among the Dividend Kings and Aristocrats List: 32 Biggest Stocks. On March 23, Mizuho lowered its price recommendation on The Sherwin-Williams Company (NYSE:SHW) to $371 from $410. It reiterated an Outperform rating on the shares. During its Q4 2025 earnings call, Sherwin-Williams provided its 2026 outlook, indicating that consolidated sales are expected to grow in the low- to mid-single-digit range. Management projected diluted EPS between $10.70 and $11.10, while adjusted diluted EPS is anticipated to come in between $11.50 and $11.90, representing a modest increase at the midpoint compared to 2025 levels, as noted by Heidi Petz. The company’s Paint Stores Group implemented a 7% price increase effective January 1, although management expects only a low single-digit realization due to market conditions and segment mix. It also indicated that raw material costs are likely to rise in the low single-digit range in 2026, driven in part by tariffs and inflation in certain commodities. Management suggested that the operating environment would remain challenging, with Heidi Petz, Chairman, CEO & President, pointing out that the “softer for longer” trend discussed previously still holds. While some conditions have begun to stabilize, cautious consumer sentiment and broader indicators continue to limit expectations for a meaningful or rapid recovery. Looking ahead, Sherwin-Williams plans to open between 80 and 100 net new stores across the US and Canada and intends to recommend a 1.3% increase in its annual dividend to $3.20 per share. The Sherwin-Williams Company (NYSE:SHW) manufactures, develops, and sells paint, coatings, and related products to professional, industrial, commercial, and retail customers. Its operations span North and South America, along with the Caribbean, Europe, Asia, and Australia. While we acknowledge the potential of SHW as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 15 Dividend Stocks to Buy for Steady Income and 14 Under-the-Radar High Dividend Stocks to Buy Now Disclosure: None. Follow Insider Monkey on Google News.