TD Cowen analyst Robert Moskow maintained a Hold rating on The Hershey Company today and set a price target of $204.00.
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Robert Moskow has given his Hold rating due to a combination of factors that reflect both positive momentum and potential risks for The Hershey Company. The company’s recent performance showed stronger-than-expected business momentum and resilience in the confectionery category, with notable growth in everyday chocolate and sweets platforms. This suggests that consumers are likely to absorb higher chocolate prices, which supports a positive outlook.
However, despite these encouraging signs, there are challenges that justify a Hold rating. The management’s assumptions about gross margin expansion and elasticity are conservative, and while there is potential for upside, significant risks remain, such as higher cocoa costs and tariff impacts. Additionally, while the company’s innovation and distribution strategies have been successful, the broader market dynamics and potential regulatory changes could affect future performance. These mixed factors contribute to the decision to maintain a Hold rating.
In another report released today, Barclays also maintained a Hold rating on the stock with a $165.00 price target.