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BMO Reiterates Outperform on Sherwin-Williams With $405 Price Target

BMO reaffirmed its $405 Sherwin-Williams target in September after raising it in July. Here is how the analyst call compares with company results, guidance and risks.
From TheFinanceBase Team3 min to read
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BMO Capital Markets reiterated its Outperform rating on Sherwin-Williams (NYSE: SHW) on September 28, 2026, with a $405 price target, according to Investing.com. That was a reaffirmation of the target—not a new increase: BMO had raised it from $400 to $405 on July 29. The target is an analyst opinion, not a forecast guarantee, and the available reports do not establish a current share price from which to calculate implied upside.

What BMO said, and when

The rating action happened in two stages. On July 29, 2026, BMO Capital Markets analyst John McNulty raised the reported target to $405 from $400 and maintained an Outperform rating. TheFly report carried by TipRanks described the move after Sherwin-Williams reported results above expectations and raised its outlook, and summarized McNulty’s positive view of the company’s performance amid a soft macroeconomic and housing backdrop. The July report does not provide the full BMO research note.

On September 28, Investing.com reported that BMO reiterated Outperform at the existing $405 target after attending Sherwin-Williams’ investor day. The report said BMO cited continued realization of a September price increase and margin improvement in Consumer Brands and Protective and Marine Coatings. It described a reiteration, not a second target increase. Read the September report. Sherwin-Williams lists BMO Capital Markets and John McNulty among the analysts covering the company on its analyst coverage page.

What the $405 target does—and does not—tell investors

A price target is an analyst’s estimate, not a promised trading price or an assurance that a stock will rise. The reports establish BMO’s rating and target, but the underlying BMO note and valuation model are not available here. They therefore do not show the assumptions behind the $405 valuation or enough detail to assess its sensitivity to sales, margins, or market conditions.

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No contemporaneous SHW share price is established in the cited reporting, so an implied percentage return cannot be calculated responsibly. Even if a target is compared with a quoted share price, that arithmetic is not a probability-weighted forecast and does not account for dividends, timing, or changes in the analyst’s view.

How Sherwin-Williams’ results compare with the reported thesis

Sherwin-Williams reported second-quarter 2026 consolidated net sales of $6.79 billion, up 7.5% year over year. Diluted earnings per share were $3.43, up 14.3%; adjusted diluted EPS was $3.70, up 9.5%. These are company-reported results, not BMO’s estimates. The company also gave full-year 2026 guidance of $10.92–$11.32 in diluted EPS and $11.80–$12.20 in adjusted diluted EPS; those are forward-looking ranges, not results already achieved. See the company’s second-quarter release.

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Within the Paint Stores Group, second-quarter sales increased 5.1%, same-store sales rose 4.2%, and segment profit increased 4.5%, according to the company’s segment results. The company said sales gains reflected price increases and low-single-digit volume growth, while higher raw-material costs and sales-support investments partly offset segment-profit growth.

For context, Sherwin-Williams’ 2025 Form 10-K reported full-year net sales of $23.574 billion, diluted EPS of $10.26, and adjusted diluted EPS of $11.43. These annual figures provide a historical comparison, but do not by themselves establish whether the 2026 guidance or BMO’s target will be met. The company’s annual reports page provides the filing.

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Growth supports and risks to weigh

Pricing and margins

The September analyst report said BMO saw continued realization of a September price increase and margin improvement in Consumer Brands and Protective and Marine Coatings. Separately, Sherwin-Williams announced an 8% Paint Stores Group price increase effective September 1, 2026, citing broad-based cost inflation. The announcement is not proof that the increase has been fully realized or that it will produce higher future margins; outcomes depend on customer response, volumes, mix, and costs.

Demand and cost pressures

Sherwin-Williams said demand remained soft and that customer sentiment and leading indicators pointed to continued softness in the second half of 2026. It also cited inflation in raw materials, energy, logistics, and packaging. Those management statements qualify the positive sales and earnings figures: price actions may help offset costs, but the company’s release does not establish that they will fully do so.

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In its July 28 results release, CEO Heidi G. Petz said: “Our better than expected second quarter results reflect the power of our differentiated model, our focus on the customer and the decisive actions our teams are taking to grow share, manage costs and respond to this dynamic environment.” This is management’s characterization of the results, not independent confirmation of the investment case.

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What investors can take from the rating

The reported sequence is clear: BMO raised its target to $405 in July and reaffirmed Outperform at that same target in September. Company results included year-over-year sales and EPS growth, while management also described persistent demand softness and cost inflation. Because the valuation rationale is not available in the cited reports and no matching share-price quote is established, readers cannot use the target alone to determine expected upside or whether SHW suits their circumstances.

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Sherwin-Williams’ investor-relations calendar scheduled third-quarter 2026 results for October 27, 2026; as of October 7, those results had not yet been reported. The date is listed on the company’s events and presentations calendar.

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