In a report released today, Jim Salera from Stephens maintained a Buy rating on The Hershey Company, with a price target of $180.00.
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Jim Salera has given his Buy rating due to a combination of factors including the strategic leadership transition at The Hershey Company. The appointment of Kirk Tanner as the new CEO is seen as a positive move, given his extensive experience in brand-building and operations from his previous roles at PepsiCo and Wendy’s. This leadership change is expected to further the company’s snacking expansion strategy, leveraging Mr. Tanner’s global execution skills to drive growth.
Moreover, The Hershey Company has been proactive in addressing potential challenges, such as tariff exposures and cost pressures related to cocoa and Canadian levies. The company is implementing various mitigation strategies, including sourcing adjustments and pricing reforms, which are expected to be detailed further mid-year. Additionally, the resilience in everyday chocolate sales and the growth in the Salty Snacks segment, with brands like Dot’s and SkinnyPop gaining traction, contribute to a positive outlook for the company’s future 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.