Sherwin-Williams outlook is brighter-Barron's

NEW YORK, Nov 8 (Reuters) - Paint producer Sherwin-Williams (SHW.N) is "spring-loaded to prosper" after several years of weak sales, buoyed by an improving housing market and sound management, Barron's magazine said on Sunday.

Barron's noted the Cleveland company -- which sells paints and stains under the Dutch Boy, Pratt & Lambert and Minwax brands -- has a dominating network of paint stores, which gives it an advantage with higher margin sales to contractors.

Sherwin-Williams also has raised its dividend for 30 years and used excess cash to buy back stock.

The stock fell 6 percent on Oct. 20 after third quarter revenue fell 12 percent and the company issued a disappointing fourth quarter earnings outlook. Still the stock price has remained resilient, closing at $58.94 on Friday or 16 times estimated 2009 earnings.

Citing one unidentified analyst who owns the shares, Barron's speculated the stock should surge to $90 based if annual earnings nearly double to $6 a share.

(Reporting by Joseph A. Giannone; Editing Bernard Orr)