Update shared on27 Aug 2025
Fair value Increased 1.50%Analysts have raised Hershey’s price target to $184.64, citing strong Q2 results, improved long-term EPS guidance, robust category trends, and positive reaction to pricing and innovation initiatives, though some remain cautious on sector fundamentals and the incoming CEO’s limited public company track record.
Analyst Commentary
- Bullish analysts increased price targets following Hershey's better-than-expected Q2 results, improved FY25 and FY26 adjusted EPS guidance, and the company's implementation of full-year tariffs.
- Outgoing CEO Michele Buck leaves Hershey with strong operating momentum, highlighted by an accelerated innovation pipeline and the announcement of a 16% price increase across the confectionery portfolio.
- Strengthening underlying category growth, positive market share trends, and resilience in elasticity for everyday chocolate are supporting the improved outlook and higher targets.
- Mixed sentiment around the new CEO appointment: Some see Kirk Tanner's global execution background as beneficial for Hershey's snacking expansion strategy, while others express concern due to his limited public company CEO experience and underwhelming stock performance at Wendy’s.
- Bearish analysts remain cautious amid persistent weak consumption trends in the food sector, forecast only modest organic sales growth and a potential EPS decline for the industry, and advise selectivity in food stock exposure.
What's in the News
- Stifel raised Hershey's price target to $180 from $160 but maintains a Hold rating, citing concern over weak consumption trends and forecasts 1% organic sales growth with a 15% EPS decline for food and beverage stocks in 2025 (Stifel).
- Hershey is increasing candy prices by double digits due to unprecedented cocoa costs, with no relation to tariffs or trade policies, as per president of US confection Andrew Archambault (Bloomberg).
- The "Make America Healthy Again" movement, led by Health Secretary Robert F. Kennedy Jr., is intensifying scrutiny on ultra-processed foods and additives, impacting companies like Hershey; industry leaders argue such regulation could have broad, complicated effects on the food supply (Wall Street Journal).
Valuation Changes
Summary of Valuation Changes for Hershey
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $181.91 to $184.64.
- The Discount Rate for Hershey has risen from 6.40% to 6.78%.
- The Future P/E for Hershey has risen slightly from 24.75x to 25.26x.
Disclaimer
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