Nomura Securities has raised its price target for paint retailer, Sherwin-Williams Company(SHW) on Tuesday.
The firm has given the company a “Buy” rating, and has increased its price target from $160 to $170. This price target suggests a 12.3% increase over the stock’s current price of $149.06.
The price increase is a result of SHW’s recent acquisition of Mexico-based paint retailer, Comex.
The firm noted, “with sales equal to 15% of SHW’s base, Comex increases SHW’s leverage to improving underlying trends,” analyst Aram Rubinson notes. “Added reach creates economies of scale and introduces synergy into the mix. SHW expects over $1.00 in EPS accretion by ‘15, equal to nearly 10% accretion off of our baseline ‘14 estimate of $10.50. The acquisition adds a positive catalyst…”
Sherwin-Williams shares were mostly flat during premarket trading Tuesday. The stock is up 66.98% YTD.
The Bottom Line
Shares of Sherwin-Williams (SHW) have a 1.05% dividend yield, based on last night’s closing stock price of $149.06. The stock has technical support in the $138-$140 price area. The stock is trading near all-time highs.
Sherwin-Williams Company(SHW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.