JFrog stock rises as Cantor Fitzgerald maintains Overweight rating after strong Q2
On Tuesday, Piper Sandler confirmed its Underweight rating on Hershey shares, alongside a consistent $120.00 price target, significantly below the current trading price of $168.01. According to InvestingPro data, Hershey maintains a P/E ratio of 15.3x and shows moderate debt levels. The firm’s stance comes after a review of the company’s cocoa sourcing strategies. Hershey has been adapting to increased costs for key ingredients such as cocoa butter, powder, and liquor by directly sourcing more cocoa beans. This shift aims to secure pricing advantages and manage expenses effectively, particularly important given the company’s current gross profit margin of 47.42%.
Despite Hershey’s efforts to mitigate rising cocoa costs, Piper Sandler adjusted its earnings per share (EPS) estimates for the company. The firm’s 2025 EPS forecast was reduced from $6.10 to $6.02, citing a slowdown in U.S. retail momentum. The 2026 EPS prediction also saw a slight decrease from $6.55 to $6.49. Although Hershey’s stock has seen a recovery since the company provided its 2025 guidance, Piper Sandler expressed concerns about the potential risks associated with cocoa costs for 2026. InvestingPro analysis suggests the company is slightly undervalued at current levels, with additional insights available in the comprehensive Pro Research Report, which covers over 1,400 US stocks.
The report by Piper Sandler suggests that the path to EPS growth in 2026 is fraught with uncertainty, which has influenced their decision to set a below-consensus target multiple for Hershey. Additionally, the firm anticipates that restoring Hershey’s historical gross margin levels could be a challenging and prolonged endeavor. This process may act as a deterrent for the company’s stock performance in the eyes of the analysts at Piper Sandler. InvestingPro data reveals that despite these challenges, Hershey maintains strong dividend credentials, having maintained payments for 55 consecutive years, with a current yield of 3.26%.
In other recent news, Hershey has reported several significant developments that may interest investors. CFRA has raised its price target for Hershey shares to $192, maintaining a Hold rating, citing confidence in potential earnings growth by 2026 based on various cocoa cost scenarios. Morgan Stanley (NYSE:MS) initiated coverage of Hershey with an Equalweight rating and a price target of $183, noting both opportunities and uncertainties related to cocoa price volatility and market challenges. Meanwhile, Hershey has appointed Stacy Taffet as the new Chief Growth Officer, effective April 14, 2025, bringing extensive marketing and leadership experience from PepsiCo (NASDAQ:PEP) to drive growth strategies.
Additionally, Hershey has implemented changes to its corporate governance, introducing a majority voting standard for board elections and a director resignation policy. The company has also expressed concerns about the ICE New York cocoa futures market, citing issues with liquidity and volatility that may affect pricing. These recent changes and announcements reflect Hershey’s strategic moves to navigate market dynamics and enhance its corporate structure.
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