Update shared on17 Sep 2025
Fair value Increased 2.46%Hershey’s consensus price target was raised to $189.18 as analysts responded positively to strong Q2 results, upward revised EPS outlook, robust category growth, and pricing power, offsetting initial CEO transition uncertainty.
Analyst Commentary
- Q2 earnings and 2025 guidance surpassed expectations, with analysts raising EPS estimates for FY25 and FY26.
- Strengthening category growth and improving market share trends cited as positive drivers for price target increases.
- Recent management transition—new CEO with mixed track record—created initial uncertainty, but is viewed by some as a logical fit for growth in snacking and global execution.
- Innovation pipeline momentum and announced 16% price increase across the confectionery portfolio are expected to support revenue growth.
- Market environment for food producers remains challenging with slow category growth and weak consumption trends, prompting cautious optimism and selective positioning among analysts.
What's in the News
- Stifel raised its price target for Hershey shares to $180 from $160, maintaining a Hold rating and expressing caution ahead of Q2 earnings, expecting only 1% organic sales growth and a 15% EPS decline across the food sector (Stifel).
- Hershey announced a roughly double-digit price increase on its candy products, citing unprecedented cocoa cost inflation as the main driver, not tariffs or trade policies (Bloomberg).
- The "Make America Healthy Again" movement is increasing scrutiny on ultraprocessed foods and additives, putting companies like Hershey under the spotlight regarding health concerns (Wall Street Journal).
- Food and agriculture leaders argue that the role of chemicals and consolidation in the industry is complex, with regulatory and public health pressure potentially affecting Hershey and other major food companies (Wall Street Journal).
- Rising ingredient inflation and regulatory scrutiny pose near-term challenges for Hershey and the broader packaged foods sector, driving selective investor sentiment (Stifel, Wall Street Journal).
Valuation Changes
Summary of Valuation Changes for Hershey
- The Consensus Analyst Price Target has risen slightly from $184.64 to $189.18.
- The Consensus Revenue Growth forecasts for Hershey has risen slightly from 3.1% per annum to 3.2% per annum.
- The Net Profit Margin for Hershey remained effectively unchanged, moving only marginally from 14.57% to 14.74%.
Disclaimer
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