Next 6-12 months crucial for prediction platforms like Kalshi and Polymarkets
Investing.com - Jefferies resumed coverage of Hershey (NYSE:HSY) with a Hold rating and a $181.00 price target on Thursday, aligning with the broader analyst consensus of 2.83 (Hold) and near the current stock price of $180.63.
The research firm noted that Hershey navigated cocoa cost pressures in 2025 through several strategies including pricing adjustments, innovation, cost-saving measures, and diversification into salty snack categories.
Jefferies acknowledged these initiatives, combined with recent cocoa price deflation, could potentially drive earnings per share growth above algorithm in 2026 and 2027.
Despite these positive factors, Jefferies projected 2027 earnings per share near $8.00, which falls approximately 30% short of consensus estimates from about two years ago.
The firm observed that while margin recovery is underway, Hershey’s current price-to-earnings ratio of approximately 27x, which sits near the high end of its 10-year range, already reflects these improvements. According to InvestingPro data, Hershey appears slightly overvalued compared to its Fair Value, despite maintaining dividend payments for 55 consecutive years with a current yield of 3.03%. For deeper insights on Hershey’s valuation and financial health (rated "GOOD"), check out the comprehensive Pro Research Report available for this company.
In other recent news, The Hershey Company reported its third-quarter 2025 earnings, exceeding analysts’ expectations with an earnings per share (EPS) of $1.30, surpassing the forecasted $1.06. The company’s revenue reached $3.18 billion, outperforming the anticipated $3.11 billion. Hershey also completed its acquisition of LesserEvil, a manufacturer of organic snacks, enhancing its position in the salty snack segment with USDA Organic and non-GMO certified products. Analyst firm Stifel lowered its price target for Hershey to $185, citing cocoa costs, while maintaining a Hold rating. Despite the lowered target, Stifel noted Hershey’s better-than-expected sales performance and reduced operating expenses. Meanwhile, RBC Capital maintained its $175 price target and Sector Perform rating after Hershey’s results exceeded market expectations. The company reported a 6% increase in organic sales during the quarter, with a notable 6 percentage point pricing benefit. Non-seasonal consumption has shown strong momentum, according to RBC Capital.
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