The Hershey Company, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Alexia Burland Howard from Bernstein maintained a Hold rating on the stock and has a $155.00 price target.
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Alexia Burland Howard has given her Hold rating due to a combination of factors affecting The Hershey Company. The unexpected early transition of Mr. Kirk Tanner as the new CEO raises concerns about potential changes in earnings expectations. Given his recent history at Wendy’s, there is a possibility that he might adjust earnings forecasts downward, especially considering the challenges Hershey faces with rising cocoa costs and weak volume trends.
Additionally, Howard notes the potential impact of external factors such as increased use of GLP-1 medications and changes in SNAP spending policies, which could negatively affect the indulgent snacking market. Despite Mr. Tanner’s extensive experience in consumer products, these pressures might continue to challenge Hershey’s performance. Therefore, the Hold rating reflects a cautious outlook amidst these uncertainties, with a target price set at $155.
In another report released yesterday, Bank of America Securities also maintained a Hold rating on the stock with a $182.00 price target.