2Q Preview: Their Move On Price

研报英文原文证据摘录

2Q Preview: Their Move On Price

Consumer | Retail Broadlines & Hardlines

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July 24, 2026

The Sherwin-Williams Company Greg Melich, CFA Oliver Wintermantel 212-446-9484 212-497-0864

SHW | $310.54 Greg.Melich@evercoreisi.com Oliver.Wintermantel@evercoreisi.com

Outperform | Target Price/Base Case: $400.00 Daragh Regan

Earnings Preview 212-446-5603

Daragh.Regan@evercoreisi.com

Company Statistics Sherwin’s 2Q was busy with many cross currents (raws/oil price,

52-Week Range $289.86 - $379.65 Akzo Nobel offer, PMI up, residential sluggishness), yet net/net we

Base Case $400.00 expect a meet & keep quarter. So when 2Q results hit next Tuesday

Upside/Downside 25.0% (7/28), the print is the undercard. The main event is pricing; we

Market Capitalization (M) $78,901

Price/Earnings 28.0 expect SHW to make a 6-8% PSG price hike by Oct official. Mgmt

Forward P/E 27.3 avoided raising prices in the peak seasonal period, but has not missed

EV / EBITDA 19.1 the window, with customers only starting to hear about potential actions

Dividend Yield 1.0% under the normal 30-60 day notice, which frames an Aug/Sep effective

Short Interest 3.4% date and a formal Street update on the call itself. The backdrop matters:

PPG went with an up-to-20% increase (similar to SHW in relevant

industrial segments) in Apr. Eyes are now on Paint Stores Group, where

Earnings Summary unconfirmed contractor chatter points to a possible SHW increase in

2025 2026E 2027E early Sep with premium lines more likely at the upper end. We stay

Consensus EPS $11.43 $11.76 $13.27 Outperform, $400 Base Case (25% upside), viewing much of the raws

risk as already in a stock that has de-rated to ~27x forward and sits EPS $11.44 $11.70 $13.40

~16% below its 52-week high.