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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.
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