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Investing.com - Piper Sandler raised its price target on Hershey (NYSE:HSY) to $167.00 from $160.00 on Tuesday, while maintaining an Underweight rating on the chocolate manufacturer’s stock. The company, currently trading at $188.30, shows mixed signals according to InvestingPro data, with analyst targets ranging from $130 to $220.
The research firm cited relief from Canadian reciprocal tariffs as a key factor in its improved outlook. These tariffs, which were removed on relevant Hershey products on September 1, previously represented approximately 25% of the company’s quarterly $100 million tariff headwind.
Piper Sandler estimates this tariff removal will provide Hershey with approximately $25 million in quarterly savings compared to previous projections, prompting the firm to adjust its earnings forecasts upward.
The investment bank raised its 2025 earnings per share estimate from $5.90 to $6.04 and its 2026 earnings per share estimate from $6.85 to $7.25.
Despite the improved outlook, Piper Sandler noted that cocoa costs remain elevated, even higher than many market observers had anticipated, though Hershey is making greater use of derivative options than usual to potentially benefit if costs decrease further.
In other recent news, The Hershey Company reported its second-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved an earnings per share (EPS) of $1.21, significantly higher than the projected $0.99, resulting in a 22.22% surprise. Revenue also exceeded forecasts, reaching $2.61 billion compared to the anticipated $2.52 billion. In addition to these financial results, Hershey announced that Juan R. Perez, a member of its board of directors, will retire in October 2025. Mr. Perez’s decision to retire was communicated to the board in August and is not related to any disagreements with the company’s operations, policies, or practices. These developments highlight recent changes and performance metrics for Hershey, offering insights into its current financial health and governance.
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