Hershey stock weakness not surprising, says Morgan Stanley

Morgan Stanley notes that Hershey (HSY) has announced the appointment of Kirk Tanner as its new CEO effective August 18th, 2025, succeeding Michele Buck who had previously announced her intention to retire from the company. Tanner was most recently the President and CEO of The Wendy’s (WEN), a role he has held since February 2024 after spending over three decades at PepsiCo (PEP). Based on its previous discussions with investors, Morgan Stanley believes many thought an internal candidate appointment was more likely. Thus, the firm is not surprised by the stock weakness today. Moreover, Tanner’s limited track record as a public company CEO and Wendy’s significant stock underperformance during his tenure suggests the management transition may be more of a show-me for now, the firm argues. Morgan Stanley has an Equal Weight rating on the shares with a price target of $173.