Analyst Peter Galbo of Bank of America Securities maintained a Hold rating on The Hershey Company, retaining the price target of $182.00.
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Peter Galbo has given his Hold rating due to a combination of factors surrounding The Hershey Company’s current and future prospects. The recent appointment of Kirk Tanner as CEO is a significant development, with his extensive experience at PepsiCo and The Wendy’s Co. being seen as both an asset and a challenge. While Tanner’s operational background is expected to benefit Hershey, there are concerns about his ability to adapt to the company’s culture and manage with fewer resources compared to his previous roles.
Additionally, Galbo maintains a Neutral rating and a price objective of $182, reflecting the complexities Hershey faces in the coming years. These include potential pressures on gross margins due to cocoa price uncertainties and the need to balance demand elasticity with cost-saving initiatives. Despite these challenges, Hershey’s innovation pipeline and lower exposure to private labels compared to peers provide some positive outlook, justifying the Hold rating.
In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $173.00 price target.
Based on the recent corporate insider activity of 101 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.