Megan Alexander, an analyst from Morgan Stanley, maintained the Hold rating on The Hershey Company. The associated price target was lowered to $173.00.
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Megan Alexander’s rating is based on the recent leadership change at The Hershey Company, with Kirk Tanner being appointed as the new CEO. This decision introduces uncertainty, as Tanner is an external hire, which can be perceived as a riskier move compared to promoting from within. His previous role as CEO of The Wendy’s Company saw significant stock underperformance, which raises concerns about his ability to lead Hershey effectively.
Despite these concerns, there are positive signs in the market, such as better elasticities in recent data, potential tariff relief, and stable cocoa futures, which could improve Hershey’s financial outlook in the near future. However, the market remains cautious about Tanner’s leadership, leading to a Hold rating as investors await clearer indications of his impact on the company’s performance.
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.