Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com - Piper Sandler reiterated an Overweight rating and $249 price target on Hershey (NYSE:HSY) stock, citing improved visibility on the company’s innovation strategy and growth investments. The stock currently trades at $207.89 with a market capitalization of $42.14 billion, though InvestingPro analysis suggests the shares are overvalued relative to its Fair Value estimate.
The firm noted Hershey’s focus on products aligned with consumer demand for functionality, premium offerings, and new taste combinations including spicy and sweet flavors and crunchy gummies.
Hershey provided guidance for 15% to 20% earnings per share growth in 2027 at a recent event focused on long-term strategy. The company did not raise its current guidance.
Piper Sandler raised its 2027 earnings per share estimate for Hershey to $9.83 from $9.00 based on improved earnings visibility. The firm maintained its $249 price target, which represents approximately 25 times the updated 2027 earnings estimate. The company currently trades at a P/E ratio of 47.76, and InvestingPro Tips highlight that Hershey is trading at a high earnings multiple. Investors can access 11 additional ProTips and comprehensive analysis through the platform’s Pro Research Report, available for over 1,400 US equities.
The analyst estimated potential for an additional 9 percentage points of growth upside from favorable cocoa costs, which could provide roughly $200 million in benefits if the company contracts its full-year 2027 costs in line with current futures prices.
In other recent news, Hershey has reaffirmed its 2026 guidance during an investor day event at the New York Stock Exchange. The company projects net sales growth of 4% to 5% and organic net sales growth of 2.5% to 3.5%, with reported earnings per share expected to grow between 79% and 89%, and adjusted earnings per share growth anticipated at 30% to 35%. Bernstein SocGen Group reiterated a Market Perform rating for Hershey, with a price target of $250.00, highlighting a projected earnings per share growth of 15% to 20% in 2027, followed by 6% to 8% growth in 2028. RBC Capital maintained its Sector Perform rating on Hershey, citing the company’s strong earnings per share visibility through 2026 and 2027 due to cocoa deflation. Additionally, Hershey’s CEO, Kirk Tanner, outlined plans to expand into premium and better-for-you options, along with growth in salty and functional snacking categories. Tanner also introduced a unified commercial model across product lines and brought in new executives to provide fresh perspectives. Meanwhile, Goldman Sachs added Citizens Financial Group and Carlisle Companies to its US conviction list. These developments reflect the latest strategic and financial moves by Hershey and other notable companies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.