Citi Downgrades Sherwin-Williams (SHW) on Housing Market Concerns

The Sherwin-Williams Company (NYSE:SHW) is one of the top 10 materials stocks to buy according to analysts. On June 13, Citi lowered its rating on Sherwin-Williams stock from Buy to Neutral, citing concerns about the housing market’s future prospects. The firm also reduced its price target from $405.00 to $385.00.

Citi analysts pointed to “sustained pressure from elevated mortgage rates” as a significant factor. They also cited “delayed expectations for Federal Reserve rate cuts,” which are “dampening hopes for a meaningful housing recovery in the second half of 2025.” The firm noted suppressed housing dynamics, including sluggish existing home sales and a challenging environment for homebuilders, indicating few signs of a market recovery in the latter half of the year.

While the analysts acknowledge Sherwin-Williams as a strong long-term player with solid market share potential and view its long-term market share growth story as intact, they believe current conditions suggest limited upside in the short term. As such, the firm stated that without clear near-term catalysts, the stock’s risk-reward profile is less compelling. The research note suggested that investors wait for a better entry point before purchasing Sherwin-Williams shares.

The Sherwin-Williams Company (NYSE:SHW) develops, manufactures, and sells paints, coatings, and related products to professional, industrial, commercial, and retail customers. With operations across the Americas, Europe, Asia, and Australia, it serves markets through brands like Valspar and its own Sherwin-Williams stores. Analysts favor the company for its scale, global reach, and consistent dividend growth, having raised its payout for 48 consecutive years.

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