TD Cowen analyst Robert Moskow maintains $Hershey (HSY.US)$ with a hold rating, and adjusts the target price from $190 to $172.
According to TipRanks data, the analyst has a success rate of 48.0% and a total average return of 4.0% over the past year.
Furthermore, according to the comprehensive report, the opinions of $Hershey (HSY.US)$'s main analysts recently are as follows:
Estimates for Hershey and Mondelez have been lowered primarily due to the increasing prices of cocoa. The futures curve for cocoa has seen a significant uptick in recent months. It is anticipated that cocoa hedges, which typically extend nine months or more, might impact earnings more heavily in the second half of 2025 compared to the first half.
The outlook for 2025 appears challenging for the food and beverage industry due to several factors. First, a significant change in the regulatory environment is unlikely. Additionally, the usage of GLP-1 is increasing slowly, and it has a high rate of dropouts. Moreover, value-seeking behavior tends to normalize as consumers adjust to elevated prices and experience the effects of wage inflation. To enhance their value perception among consumers, many brands within the industry may need to reconsider and adjust their pricing and margin structures.
Historic levels of underperformance have set 'a low bar' for the U.S. Food group, but heading into 2025, signs of stabilizing volume and improved earnings delivery will be critical areas to watch.
Note:
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