Analyst Note| Charles Gross |
Sherwin-Williams got off to a strong start in 2021, with net sales up more than 12% to $4.66 billion and adjusted EBITDA up 36% from the prior-year quarter. Americans continued to spend more time at home during the first quarter, and housing markets are on fire as people reconsider their living arrangements. Both of these trends were strong tailwinds for Sherwin, given its U.S.-oriented revenue exposure. Despite the blazing start to 2021, the results were consistent with our outlook for the year. With our outlook largely intact, we've left our $135 per share fair value estimate and narrow moat rating unchanged.