Update shared on16 Oct 2025
Fair value Increased 1.46%Hershey's fair value estimate was modestly increased to $191.95 from $189.18 as analysts cited strengthening category growth, improved earnings outlook, and revitalized innovation as supporting factors for higher price targets across the Street.
Analyst Commentary
Recent Street research on Hershey reflects a dynamic outlook, with both bullish and cautious perspectives shaping the current investment narrative.
Bullish Takeaways- Bullish analysts have upgraded their ratings and increased price targets, highlighting signs of strengthening category growth and revitalized innovation pipelines.
- Price targets were revised upward in recognition of better-than-expected quarterly results and upwardly revised earnings outlooks for 2025 and 2026.
- Robust pricing power was evidenced by a recently announced 16% price increase across Hershey’s confectionery portfolio, which supports revenue growth potential.
- Some foresee improved longer-term performance as the company continues to execute on innovation and adapts to evolving market trends.
- Bearish analysts have maintained more neutral stances, expressing concern that a more favorable 2026 outlook may already be priced into the stock.
- The broader sector faces ongoing headwinds from weak consumption trends and slower center store category growth, which could pressure near-term results.
- Some anticipate only modest organic sales growth and project an average earnings decline for the upcoming year, advising selectivity in food sector exposure.
- There is caution regarding market share risks and uncertainties around regulatory factors, which could influence the pace of earnings recovery.
What's in the News
- Hershey announced a double-digit price increase on its candy portfolio due to unprecedented cocoa costs, according to company executives (Bloomberg).
- Stifel raised its price target for Hershey to $180 from $160. The firm maintained a Hold rating and cautioned about weak consumption trends and modest sales growth estimates for 2025 (Stifel).
- The company will debut new product innovations such as the Reese's OREO Cup and expanded snacking offerings at the 2025 NACS Show Expo. These efforts aim to drive growth in the convenience channel.
- Hershey is partnering with the New York Jets as part of new United Kingdom-based sponsorships. The collaborations will feature Reese's-themed fan events and product giveaways during NFL games in London.
Valuation Changes
- The Fair Value Estimate has increased slightly to $191.95 from $189.18.
- The Discount Rate remains unchanged at 6.78%.
- The Revenue Growth forecast has edged down marginally to 3.24% from 3.24%.
- The Net Profit Margin is up modestly to 14.77% from 14.74%.
- The Future P/E Ratio has risen slightly to 25.85x from 25.52x.
Disclaimer
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