The Hershey Company (HSY – Research Report), the Consumer Defensive sector company, was revisited by a Wall Street analyst today. Analyst Thomas Palmer from Citi maintained a Hold rating on the stock and has a $165.00 price target.
Thomas Palmer has given his Hold rating due to a combination of factors impacting The Hershey Company’s financial outlook. A primary concern is the recently implemented 10% tariff on US imports, which is expected to increase Hershey’s cocoa costs by approximately 10% by the third quarter of 2025. This cost increase poses a risk to the company’s earnings, as it is uncertain whether Hershey will be able to implement pricing strategies to fully offset these additional expenses.
Furthermore, Palmer has adjusted his earnings estimates and target price for Hershey, reflecting the anticipated impact of the tariffs. The earnings per share projections for 2025 and 2026 have been lowered, and the target price has been reduced from $173 to $165. While the first quarter performance is expected to align with consensus estimates, the potential for a guidance cut and the effect of tariffs on gross margins contribute to a more cautious outlook, justifying the Hold rating.
In another report released on April 8, Bernstein also maintained a Hold rating on the stock with a $147.00 price target.