The Hershey Company (HSY – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst John Baumgartner from Mizuho Securities maintained a Hold rating on the stock and has a $140.00 price target.
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John Baumgartner’s rating is based on a combination of factors that suggest a cautious outlook for The Hershey Company. Despite the company beating expectations with its Q4 earnings per share (EPS) and revenue, the guidance for FY25 EPS is significantly lower than what the market anticipated. This discrepancy indicates potential challenges in meeting future financial goals, although there is some optimism due to visibility into cocoa costs and opportunities for productivity savings.
Moreover, while The Hershey Company’s shares have underperformed the market year-to-date, trading at a high premium compared to peers, there are concerns about revenue growth and volume expectations, which are viewed as overly optimistic. Baumgartner notes that some investors might see the current situation as a potential bottom for the stock, especially if there’s an EPS recovery in 2026. Hence, he maintains a Hold rating, indicating that while there are potential upsides, significant risks remain, warranting a cautious stance.
In another report released today, Stifel Nicolaus also maintained a Hold rating on the stock with a $160.00 price target.
HSY’s price has also changed moderately for the past six months – from $199.390 to $152.340, which is a -23.60% drop .