- Sherwin-Williams (SHW -1.9%) is downgraded to Neutral from Buy with a $435 price target, cut from $492, at Citigroup, which cites "tough" market comments from companies Such as PPG Industries (PPG +0.9%), H.B. Fuller (FUL -3.2%) and RPM International (RPM +1.1%) suggest coatings companies likely will be hurt by rising raw materials costs and slowing growth in key end markets including China.
- Citi's P.J. Juvekar says SHW is not immune to the risks despite the company's strong U.S. stores business, especially with Valspar's more cyclical industrial business and acquisition-related debt.
- PPG plunged 10% yesterday after issuing disappointing Q3 guidance on earnings and revenue, citing inflationary pressures and weaker demand in China.