Hershey stock price target raised to $185 from $180 at Stifel on Q2 beat

Investing.com - Stifel raised its price target on Hershey (NYSE:HSY) to $185.00 from $180.00 on Thursday, while maintaining a Hold rating on the stock following the company’s second-quarter earnings report. According to InvestingPro data, the stock has shown strong momentum with a 29% gain over the past six months, though current analysis suggests the stock is slightly overvalued at current levels.

The chocolate maker reported second-quarter earnings per share of $1.21, exceeding Stifel’s estimate by $0.20, driven by better-than-expected sales performance and less gross margin contraction than anticipated. The company maintains strong financial health with a current ratio of 1.59, indicating solid liquidity, and operates with a moderate debt level.

Hershey updated its 2025 guidance to include full-year tariff exposure in the range of $170-$180 million, a factor that was not previously incorporated in the company’s outlook for the second half of 2025.

The revised guidance now projects an annual earnings per share decline between 36% and 38%, primarily attributed to significant cocoa inflation and the added tariff exposure.

Stifel indicated it has updated its outlook to account for current tariff headwinds by reducing second-half 2025 estimates while maintaining projections at the low end of Hershey’s guidance range for 2025 and raising its 2026 EPS estimate.

In other recent news, Hershey Co has reported its second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share (EPS) of $1.21, significantly higher than the forecasted $0.99. Hershey also reported actual revenue of $2.61 billion, exceeding the projected $2.52 billion. In addition to strong earnings, CFRA has raised its price target for Hershey from $169.00 to $212.00, maintaining a Hold rating on the stock. This adjustment reflects the company’s solid momentum in its recent Q2 results and potential outcomes for 2026, despite challenges such as cocoa inflation and tariffs. Furthermore, Hershey and Mondelēz International have announced the launch of two new collaborative products, the Reese’s Oreo Cup and the Oreo Reese’s Cookie, in response to consumer demand. These developments highlight the company’s ongoing efforts to innovate and expand its product offerings.

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