Goldman Sachs upgrades Hershey stock rating to Buy on improved outlook

Published 16/09/2025, 09:28
Goldman Sachs upgrades Hershey stock rating to Buy on improved outlook

Investing.com - Goldman Sachs upgraded Hershey (NYSE:HSY) from Sell to Buy and raised its price target to $222.00 from $170.00. The chocolate maker, currently trading at $185.56 with a market cap of $37.6 billion, has shown strong financial health according to InvestingPro data.

The investment bank cited a "compelling risk/reward set-up" for the stock following multiple guidance reductions over the past year.

Goldman Sachs noted that cost pressures, including cocoa prices and tariffs, are now largely known and reflected in market expectations, while the company’s market share trends have shown improvement.

The firm expects Hershey’s recent pricing announcements to drive significant earnings growth in fiscal year 2026, supported by a solid consumer backdrop that should result in better-than-expected elasticities.

Goldman Sachs highlighted Hershey’s "historically strong pricing power" connected to its iconic brand portfolio as a key factor in its upgraded outlook for the confectionery manufacturer.

In other recent news, Hershey reported impressive second-quarter earnings for 2025, surpassing Wall Street forecasts. The company achieved an earnings per share of $1.21, exceeding the expected $0.99, and reported revenue of $2.61 billion, which also surpassed the anticipated $2.52 billion. Additionally, Piper Sandler raised its price target for Hershey to $167 from $160, while maintaining an Underweight rating, citing relief from Canadian reciprocal tariffs as a contributing factor. These tariffs, removed on September 1, previously accounted for about 25% of Hershey’s quarterly $100 million tariff burden. In a separate development, Hershey announced that Juan R. Perez, a director on the board, will retire effective October 3, 2025. Perez’s decision to retire is not related to any disagreements with the company’s operations or policies. These updates highlight significant developments for Hershey as it navigates market conditions and corporate governance changes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.