Citi Maintains Buy Rating for Sherwin-Williams (SHW)

Sherwin-Williams Company (NYSE:SHW) is one of the best Materials stocks to invest in according to Hedge Funds.

On January 19, Citi analyst Patrick Cunningham maintained a Buy rating for Sherwin-Williams Company (NYSE:SHW). Moreover, the analyst raised his price target from $390 to $410, resulting in a revised upside potential of more than 18%. Cunningham sees an elevated housing forecast through 2027, which inspires confidence in the stock.

Back on January 7, RBC Capital analyst Arun Viswanathan also maintained his Outperform rating for Sherwin-Williams Company (NYSE:SHW). He lowered his target price estimates from $405 to $395, resulting in an upside potential of around 14%.

Despite weaker consumer sentiment and lackluster construction, Viswanathan anticipates the fourth-quarter results for Sherwin-Williams Company (NYSE:SHW) to be in line with management guidance. He noted some fundamental factors that will continue to support the ongoing share gains. These include the company’s $80 million annual savings in restructuring costs, as well as effective execution of price hikes.

Sherwin-Williams Company (NYSE:SHW) develops and distributes paints, coatings, and similar products covering a range of industrial, commercial, and retail segments. Its extensive distribution network comprises self-owned stores, dealers, and online platforms. The company has a well-diversified brand portfolio backed by bulk manufacturing and an R&D focus.

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.

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Disclosure: None. This article is originally published at Insider Monkey.