U.S. stock futures slip lower; Cook’s firing increases Fed independence worries
Investing.com - CFRA has raised its price target on Hershey (NYSE:HSY) to $212.00 from $169.00 while maintaining a Hold rating on the stock. According to InvestingPro data, the company currently trades at a P/E ratio of 23.4x and shows good overall financial health, with liquid assets exceeding short-term obligations.
The research firm cited several factors for the significant price target increase, including potential outcomes for 2026 and solid momentum in the company’s recent Q2 results, despite challenges from tough year-over-year comparisons and unprecedented cocoa inflation and tariffs. Notably, InvestingPro data shows Hershey has maintained dividend payments for 55 consecutive years, demonstrating remarkable financial stability despite market challenges.
CFRA’s new target represents a premium to Hershey’s long-term average forward P/E of 23x, which the firm believes is warranted given variables such as cocoa costs, price elasticities, tariff exposure, and potential strategic shifts under new CEO Kirk Tanner, who previously worked at Wendy’s (NASDAQ:WEN) and PepsiCo (NASDAQ:PEP).
The firm has also raised its 2026 EPS estimate to $6.83 from $6.75 and its 2025 estimate to $6.04 from $5.86, noting that 2026 could potentially be an "above-algorithm year" for the chocolate manufacturer.
CFRA indicated that while investors may have mixed feelings about Tanner given his short tenure at Wendy’s, his experience at PepsiCo should be viewed as more valuable, though one consideration is that external CEO hires often reinvest more in their first year.
In other recent news, Hershey Co has reported its second-quarter earnings for 2025, surpassing analyst expectations. The company achieved an earnings per share of $1.21, significantly higher than the forecasted $0.99, marking a 22.22% surprise. Hershey also reported actual revenue of $2.61 billion, which exceeded the projected $2.52 billion. Additionally, The Hershey Company and Mondelēz International announced the launch of two new collaborative products. These products, the Reese’s Oreo Cup and the Oreo Reese’s Cookie, are a response to consumer demand for a flavor combination of the two popular snack brands. This collaboration reflects the companies’ efforts to innovate and respond to market trends.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.