iti noted that although Sherwin-Williams’ long-term market share growth story remains solid, its near-term risk/reward profile is less attractive.

Shares of Sherwin-Williams fell 5.7% to $335.88 after Citi reportedly downgraded the stock and slashed its target price on Friday.

According to The Fly, Citi changed Sherwin-Williams’s stock rating to “Neutral” from “Buy” and cut the price target to $385 from $405 — a 14.6% upside from the current stock price.

The firm attributed the downgrade to “suppressed housing dynamics” in the near term, driven by elevated mortgage rates and delayed interest rate cuts by the Federal Reserve.

Citi noted that although Sherwin-Williams’ long-term market share growth story remains solid, its near-term risk/reward profile is less attractive, suggesting investors may find a more favorable entry point later.

The brokerage firm stated it favors RPM International (RPM) in the near term, citing its bigger exposure to non-residential construction and ongoing infrastructure trends.

The paints and coatings developer reported a 1.1% decline in Q1 FY 2025 net sales to $5.31 billion in April. It also reaffirmed FY 2025 diluted net income per share guidance in the range of $10.70 to $11.10 per share.

Earlier this year, Sherwin-Williams announced the acquisition of BASF’s Brazilian decorative paints business for $1.15 billion. The deal covers production facilities, brands, and around 1,000 employees, and is expected to close in the second half of 2025.

However, retail sentiment on Stocktwits turned ‘bullish’, accompanied by ‘high’ message volumes.

One user said that the stock was an easy buy.

Year-to-date, the stock has fallen 1.2% as of Friday’s close.

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