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Investing.com - Stifel has lowered its price target on Hershey (NYSE:HSY) to $185.00 from $195.00 while maintaining a Hold rating following the company’s third-quarter earnings report. Currently trading at $167.36, the stock sits below Stifel’s target but is considered slightly overvalued according to InvestingPro analysis. With an RSI indicating oversold territory, Hershey presents an interesting technical setup for investors tracking valuation metrics.
Hershey reported third-quarter earnings per share of $1.30, exceeding Stifel’s estimate by $0.23, driven by better sales performance, lower operating expenses, and a reduced tax rate. Organic sales increased 6% during the quarter, with flat volume/mix and a 6 percentage point pricing benefit. This performance comes as InvestingPro data shows Hershey trading at a P/E ratio of 25.01 with a healthy 3.2% dividend yield – particularly notable as the company has maintained dividend payments for 55 consecutive years.
The company’s gross margin contracted by more than 850 basis points year-over-year to 31.8%, primarily due to elevated cocoa costs, $65 million in incremental tariff expenses, and unfavorable product mix. Despite margin pressures, Hershey maintains a solid financial foundation with liquid assets exceeding short-term obligations and operating with a moderate debt level, according to InvestingPro data.
Hershey raised its full-year 2025 guidance, now expecting sales growth of 3%, up from its previous forecast of 2%. The company also adjusted its earnings per share decline projection to between -37% and -36%, slightly improved from its earlier forecast of -38% to -36%.
Despite the improved annual outlook, Hershey warned that fourth-quarter profit performance is expected to weaken due to higher costs and increased investment support, though the company remains confident in its algorithm-based performance projections for both top and bottom lines in 2026.
In other recent news, Hershey reported its third-quarter 2025 earnings, surpassing analysts’ expectations with an earnings per share of $1.30, compared to the forecasted $1.06. The company’s revenue reached $3.18 billion, exceeding the anticipated $3.11 billion. Despite these positive results, Hershey’s stock showed a decline, although this article focuses on the earnings and revenue outcomes rather than stock price movements. RBC Capital maintained its Sector Perform rating on Hershey, keeping the price target at $175. The firm highlighted that Hershey’s organic sales and earnings per share beat consensus estimates by 230 basis points and approximately 22%, respectively. RBC noted strong momentum in non-seasonal consumption at the beginning of October. These developments reflect a period of robust financial performance for Hershey, as assessed by analysts.
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