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NEW YORK (TheStreet) -- Credit Suisse initiated coverage on Sherwin-Williams Co.  (SHW) - Get Sherwin-Williams Company Report  stock with an "outperform" rating on Tuesday. The firm set a price target of $308 on the shares.

The Cleveland-based paint company announced on Sunday that it would acquire The Valspar Corp. (VAL) in a deal valued at $11.3 billion. The deal is expected to close at the end of the 2017 first quarter.

Though the acquisition comes with a heavy price tag, Sherwin-Williams may have the "last laugh," Credit Suisse said. 

"Despite our acknowledgement that deals of this size are scarce within the coatings space, we fail to see a cogent argument on why another bidder would have, or be able to pay the $113 per share price tag," the firm added. 

The deal, which is likely to close, is integral to the firm's view of the stock, Credit Suisse said. 

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Sherwin-Williams stock is gaining 0.15% to $273.70 in pre-market trading on Tuesday. 

Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rates this stock as a "buy" with a ratings score of A-. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

You can view the full analysis from the report here: SHW

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