In a report released today, Robert Moskow from TD Cowen maintained a Hold rating on The Hershey Company (HSY – Research Report), with a price target of $133.00.
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Robert Moskow has given his Hold rating due to a combination of factors impacting The Hershey Company’s financial outlook. One key reason is the substantial inflation in cocoa prices, which has led to a downward revision of Hershey’s earnings per share (EPS) estimates for 2025 and 2026. Specifically, the EPS estimates have been adjusted to $6.77 for 2025 and $7.00 for 2026, reflecting a significant year-over-year decline. This adjustment aligns with the trends observed in Mondelez’s financial performance, given both companies’ exposure to cocoa costs.
Additionally, Moskow notes that while Hershey might implement pricing strategies similar to Mondelez to mitigate cocoa cost pressures, its approach seems less aggressive. This cautious pricing strategy may be due to concerns over price elasticity and competitive pressures in the U.S. market. FactSet data indicates a sharp rise in cocoa futures, which compounds the challenges in forecasting strong financial performance. Given these factors, the price target for Hershey has been lowered to $133, suggesting limited upside potential unless cocoa prices stabilize at more normalized levels.
In another report released on February 3, RBC Capital also maintained a Hold rating on the stock with a $178.00 price target.