Morgan Stanley analyst Megan Alexander has maintained their neutral stance on HSY stock, giving a Hold rating yesterday.
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Megan Alexander’s rating is based on a combination of factors that highlight both strengths and challenges for The Hershey Company. The company reported a strong second quarter with significant topline and profit growth, outperforming expectations. This was driven by robust performance in North America Confectionery and strategic pricing actions to counter cocoa inflation. However, despite these positive results, there are concerns about potential volume pressure due to elasticity and the impact of cocoa inflation and tariffs.
Megan Alexander notes that while there is optimism regarding Hershey’s pricing power and market share gains, the future outlook is tempered by these potential headwinds. The company’s guidance for fiscal year 2025 suggests a cautious approach, with expectations of moderate growth. Therefore, the Hold rating reflects a balanced view, acknowledging the company’s strong fundamentals and growth potential, while also considering the external challenges that could impact future performance.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $165.00 price target.
Based on the recent corporate insider activity of 107 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of HSY in relation to earlier this year.