UBS Lowers Sherwin-Williams (SHW) Target as Housing Headwinds Persist
Key takeaways
- On June 2, UBS downgraded The Sherwin-Williams Company (NYSE:SHW) from Buy to Neutral.
- The analyst also pointed to potential challenges from the company’s changing business mix and the possibility of higher leverage tied to future acquisitions.
- The Sherwin-Williams Company (NYSE:SHW) manufactures, develops, distributes, and sells paint, coatings, and related products.
UBS Lowers Sherwin-Williams (SHW) Target as Housing Headwinds Persist Vardah Gill Thu, June 4, 2026 at 10:02 PM GMT+7 2 min read SHW UBS The Sherwin-Williams Company (NYSE:SHW) is included among the 10 No-Brainer Dividend Stocks to Buy.
On June 2, UBS downgraded The Sherwin-Williams Company (NYSE:SHW) from Buy to Neutral. It also lowered its price target on the stock to $330 from $385. According to the firm, the company’s earnings remain closely tied to a recovery in the U.S. housing market. The analyst noted that the “unsupportive housing market pushes that timeline further out,” making it less likely that a meaningful recovery will occur in the near term.UBS now expects Sherwin-Williams to grow earnings by about 5% annually over the next two years. The firm does not anticipate above-average earnings growth before 2028.
The analyst also pointed to potential challenges from the company’s changing business mix and the possibility of higher leverage tied to future acquisitions. UBS believes these factors could weigh on the stock and create a risk of a near-term share re-rating. As a result, the firm does not see a clear catalyst that could drive the stock higher over the medium term.