Analyst Lauds Hershey's Shining Future Growth Prospects, Resilient Category Demand And New Capacity
Analyst Lauds Hershey's Shining Future Growth Prospects, Resilient Category Demand And New Capacity
分析師稱讚Hershey的光明未來增長前景、彈性品類需求和新產能
- Mizuho analyst John J. Baumgartner reiterated a Neutral rating on The Hershey Company (NYSE:HSY), raising the price target to $263 from $235.
- Baumgartner notes that Hershey's achievable guidance, resilient category demand, and new capacity will limit downside risks to FY23 EPS.
- The analyst applauds the company's category defensiveness, vigorous execution of snacking exposure, increasing capacity (chocolate & non-chocolate), and strong returns from advertising spend.
- Investors will continue to find near-term confidence in the confectionery. This is because the new capacity is on track (tonnage approx. +300bps this year) and will enable full participation in Halloween and year-end holidays (improving market share) and summer merchandising for chocolate and non-chocolate products.
- In addition, the planned acquisition of Weaver popcorn manufacturing assets is expected to happen potentially in Q2.
- The buyout will provide ample capacity for multi-year growth, incremental operating leverage, and margin upside in FY24 and beyond.
- For FY23, the analyst increased gross margin to 44.7% and +70bps Y/Y vs. the prior 44.4% guidance.
- This year, the company will undertake a range of investments, including increased brand spending to support key confection and salty snacks brands, including Reese's, Hershey's, seasonal initiatives, gummies, better-for-you products, and salty snacks.
- The analyst notes that new capacity should further support volume as constraints have limited HSY's ability to meet demand, particularly for Halloween and holidays.
- Also Read: Hershey Raising The Bar With Solid Q1 Beat; Eyes High-End Of FY23 Outlook
- Price Action: HSY shares are trading higher by 1.27% at $276.53 on the last check Monday.
- 瑞穗分析師John J.Baumgartner重申評級為中性好時公司(紐約證券交易所代碼：HSY)，將目標價從235美元上調至263美元。
- 鮑姆加特納指出，好時可實現的指引、具有彈性的類別需求和新的產能將限制23財年每股收益的下行風險。
- 這位分析師稱讚該公司的品類防禦性，積極開展零食曝光，增加產能(巧克力和非巧克力)，並從廣告支出中獲得強勁回報。
- 投資者將繼續對糖果行業短期內保持信心。這是因為新的運力已步入正軌(噸位約為今年增長了300個基點)，並將全面參與萬聖節和年終假期(提高市場份額)，以及巧克力和非巧克力產品的夏季促銷活動。
- 此外，收購Weaver爆米花製造資產的計劃預計將在第二季度完成。
- 此次收購將為2014財年及以後的多年增長、增量運營槓桿和利潤率上升提供充足的產能。
- 在23財年，分析師將毛利率提高到44.7%，同比增長70個基點，而之前的指引為44.4%。
- 今年，該公司將進行一系列投資，包括增加品牌支出，以支持關鍵的糖果和鹹味零食品牌，包括裡斯、好時、季節性舉措、口香糖、對你更好的產品和鹹味零食。
- 這位分析師指出，新的運力應該會進一步支撐銷量，因為限制限制了HSY滿足需求的能力，特別是在萬聖節和假日。
- 也請閱讀：好時以紮實的第一季度節拍提升標準；著眼於23財年前景的高端
- 價格行動：在週一的最後一次檢查中，HSY的股價上漲了1.27%，達到276.53美元。