Hershey stock outlook neutral ahead of Q3 earnings, says UBS

Investing.com - UBS maintained its Neutral rating and $205.00 price target on Hershey (NYSE:HSY), the $37.7 billion confectionery giant, ahead of its third-quarter earnings report scheduled for October 30. According to InvestingPro data, six analysts have recently revised their earnings expectations upward for the upcoming period.

UBS forecasts earnings per share of $1.05 for the quarter, slightly below the Visible Alpha consensus of $1.07, but believes the setup into the earnings announcement remains positive.

The firm expects Hershey to deliver solid quarterly results with no material changes to guidance, suggesting that meeting expectations and reiterating future plans should satisfy investors in an earnings season with few standouts across the consumer goods sector.

UBS addressed pushback on its view, noting that improved investor sentiment around Hershey primarily focuses on 2026 prospects rather than the upcoming quarterly results, and doesn’t expect optimism to fade following the earnings report.

Looking beyond the immediate earnings release, UBS cautions that the outlook becomes more complicated as investors weigh realistic earnings recovery potential against current market pricing, seeing a path to above-algorithm growth but questioning whether the magnitude of earnings per share priced into the stock is realistic.

In other recent news, Hershey has seen several notable developments. Goldman Sachs upgraded Hershey’s stock rating from Sell to Buy, raising its price target to $222.00, citing a "compelling risk/reward set-up" following multiple guidance reductions over the past year. Meanwhile, Piper Sandler has maintained its Underweight rating on Hershey, but increased its price target from $160.00 to $167.00 due to relief from Canadian tariffs, which had previously impacted the company’s quarterly performance. DA Davidson has reiterated its Neutral rating on Hershey, following discussions with the company’s senior leadership about cocoa pricing and overall business strategy.

Additionally, Hershey announced that board director Juan R. Perez will retire in October 2025. This decision was clarified to be unrelated to any disagreements with the company’s operations or policies. These developments provide investors with insights into Hershey’s current strategic positioning and leadership dynamics.

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