Hershey (NYSE:HSY) Stock Rating Cut to "Hold" at TD Cowen

Key Points

• TD Cowen downgraded Hershey to “Hold” from “Buy” and set a $173 price target, implying 7.75% upside from the prior close.
• Analyst sentiment remains mixed, with the broader consensus at “Hold” and an average price target of $197; seven analysts rate the stock a Buy, 17 a Hold and one a Sell.
• Hershey exceeded quarterly earnings and revenue expectations, but weaker sales volumes and consumer pressure have raised concerns about the sustainability of profit gains driven by pricing.

Hershey (NYSE:HSY - Get Free Report) was downgraded by analysts at TD Cowen from a "buy" rating to a "hold" rating in a research note issued to investors on Friday, MarketBeat Ratings reports. They presently have a $173.00 price target on the stock. TD Cowen's price objective indicates a potential upside of 7.75% from the stock's previous close.

HSY has been the topic of several other research reports. Bank of America reaffirmed a "neutral" rating and set a $170.00 price target on shares of Hershey in a research note on Friday. Weiss Ratings upgraded Hershey from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, October 23rd. Piper Sandler dropped their price objective on Hershey from $249.00 to $200.00 and set an "overweight" rating for the company in a report on Thursday, July 9th. Stifel Nicolaus cut their target price on shares of Hershey from $215.00 to $180.00 and set a "hold" rating on the stock in a research report on Wednesday, July 22nd. Finally, The Goldman Sachs Group reaffirmed a "buy" rating and issued a $194.00 target price on shares of Hershey in a research note on Friday. Seven equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Hold" and a consensus target price of $197.00.

Hershey Price Performance

HSY opened at $160.56 on Friday. The company has a debt-to-equity ratio of 1.03, a current ratio of 1.18 and a quick ratio of 0.66. The stock has a market capitalization of $32.26 billion, a P/E ratio of 21.93, a price-to-earnings-growth ratio of 1.37 and a beta of 0.10. The company's 50 day simple moving average is $170.14 and its 200-day simple moving average is $189.16. Hershey has a one year low of $156.16 and a one year high of $239.48.

Hershey (NYSE:HSY - Get Free Report) last posted its quarterly earnings data on Thursday, October 29th. The company reported $2.64 earnings per share for the quarter, topping the consensus estimate of $2.11 by $0.53. Hershey had a net margin of 12.24% and a return on equity of 31.92%. The firm had revenue of $3.28 billion during the quarter, compared to analysts' expectations of $3.25 billion. During the same quarter in the previous year, the company posted $1.30 EPS. Hershey's revenue was up 3.0% on a year-over-year basis. Sell-side analysts anticipate that Hershey will post 8.47 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Hershey

Institutional investors have recently modified their holdings of the stock. Delta Asset Management LLC TN raised its holdings in Hershey by 17.1% during the second quarter. Delta Asset Management LLC TN now owns 410 shares of the company's stock worth $72,000 after acquiring an additional 60 shares in the last quarter. Meeder Advisory Services Inc. grew its stake in Hershey by 2.7% in the first quarter. Meeder Advisory Services Inc. now owns 2,316 shares of the company's stock valued at $481,000 after purchasing an additional 61 shares in the last quarter. Intrua Financial LLC grew its stake in Hershey by 4.2% in the third quarter. Intrua Financial LLC now owns 1,673 shares of the company's stock valued at $264,000 after purchasing an additional 67 shares in the last quarter. Eastern Bank increased its position in shares of Hershey by 10.7% during the 3rd quarter. Eastern Bank now owns 702 shares of the company's stock worth $111,000 after purchasing an additional 68 shares during the last quarter. Finally, Bogart Wealth LLC increased its position in shares of Hershey by 4.1% during the 1st quarter. Bogart Wealth LLC now owns 1,889 shares of the company's stock worth $393,000 after purchasing an additional 75 shares during the last quarter. 57.96% of the stock is currently owned by institutional investors and hedge funds.

Hershey News Summary

Here are the key news stories impacting Hershey this week:

• Positive Sentiment: Hershey reported third-quarter adjusted EPS of $2.64, well above the $2.11 consensus estimate, while revenue reached $3.28 billion versus expectations of $3.25 billion. Earnings benefited from pricing, cost relief and tariff refunds. Hershey Reports Third-Quarter 2026 Financial Results
• Positive Sentiment: The company raised its full-year 2026 earnings outlook, supported by margin improvements and pricing gains, despite ongoing volume challenges.
• Positive Sentiment: Management is targeting 2% to 4% sales growth in 2027 and expects an innovation pipeline approximately 50% larger than the prior year, potentially supporting longer-term growth. 2027 Sales Growth and Innovation Pipeline
• Positive Sentiment: Hershey declared a quarterly dividend of $1.452 per common share, or $5.81 annualized, providing an indicated yield of roughly 3.6%. Hershey Declares Quarterly Dividends
• Neutral Sentiment: Analyst views were mixed: Evercore raised its price target to $225 and maintained an outperform rating, while BNP Paribas Exane cut its target to $195 but also retained an outperform rating. BNP Paribas Exane Price Target
• Negative Sentiment: Hershey reduced its 2026 organic-sales growth forecast as higher prices, inflation, elevated gas costs and interest rates pressure consumers and weigh on Halloween candy purchases. Consumer Financial Pressures and Halloween Spending
• Negative Sentiment: Pricing is helping profit growth, but weaker volumes and cautious consumer spending raise concerns about the sustainability of earnings gains.

Hershey Company Profile

The Hershey Company NYSE: HSY is a global confectionery and snack food manufacturer headquartered in Hershey, Pennsylvania. Founded by Milton S. Hershey in 1894, the company began as a chocolate producer and has grown into one of the largest branded snack businesses in North America.

Hershey's portfolio includes chocolate, non-chocolate confectionery, gum and mints, and salty snacks. Its brands include Hershey's, Reese's, Hershey's Kisses, Kit Kat in the United States under license from Nestlé, Jolly Rancher, Twizzlers, Ice Breakers, SkinnyPop and Dot's Pretzels.

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