Sherwin-Williams Earnings: Resilient Residential Repaint Offsets Industrial Headwinds

Wide-moat Sherwin-Williams reported first-quarter earnings that came with few surprises as the company navigated challenging architectural end markets in the US. Weakness in industrial end markets has continued to weigh on Sherwin’s performance coatings business, a trend that could persist through the remainder of the year. Nevertheless, we expect Sherwin to maintain strong momentum in residential repaint while growth in single family housing starts should drive additional sales. As such, we've increased our fair value estimate to $219 from $214 per share.