Mizuho Adjusts Sherwin-Williams (SHW) Target Lower, Maintains Outperform

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.

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