Buckingham analyst Dmitry Silversteyn maintained a Neutral rating on Sherwin-Williams (SHW) and PPG (PPG) and sees both stocks trading sideways to down over the next 3-6 months as weather-related acceleration in year-over-year volume comps suggested by the firm's survey of the North American paint market is unlikely to offset slowing industrial coatings growth and flattening RM comps that limit margin expansion opportunities and slow EBITDA growth, potentially pressuring valuation multiples. The analyst raised his price target for Sherwin-Williams to $485 from $460.

Sees FY24 revenue growth up in low to mid-single digits, consensus $23.78B.

Consensus for Q2 revenue is $6.36B.

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

Get caught up quickly on the top news and calls moving stocks with these five Top Five lists. 1... To see the rest of the story go to thefly.com. See Story Here

KeyBanc lowered the firm's price target on PPG to $162 from $164 and keeps an Overweight rating on the shares. Volumes have yet to see a material improvement, although improvement trend over the last few quarters is convincing, the firm says. KeyBanc views the flat result in Q1 to be on the lighter side but expecta improvement as 2024 unfolds, and accelerating into 2025. Investors are clearly concerned about margin cycle turning lower, but the firm sees the current level of petrochemical inflation as more than manageable in the context of PPG's long-term margin history, modest rise in costs so far, and proactive portfolio improvement.

Deutsche Bank analyst David Begleiter lowered the firm's price target on PPG to $155 from $160 and keeps a Buy rating on the shares following the Q1 report. The analyst says the company's second half of the year earnings ramp overshadows the volume inflection. With Q1 volumes falling short of expectations and Q2 guidance modestly below expectations as industrial and European demand remains weak, investors are concerned the company's second half guidance is too high, the analyst tells investors in a research note. The firm believes PPG will be able to achieve its earnings guidance, albeit at the low end of the range which represents more reasonable 11% growth.