Morgan Stanley has adjusted its outlook on Hershey (HSY, Financial), with analyst Megan Alexander Clapp reducing the company's price target from $183 to $177. The firm's rating on the stock remains at Equal Weight. This adjustment comes in anticipation of Hershey's first-quarter earnings report.
The analyst cites a reduction in organic sales growth projections for the broader packaged food industry due to consistently weak scanner data. Specific to Hershey, there is perceived risk in both sales and earnings per share (EPS) for the first quarter. These risks are attributed to overly optimistic market expectations for international and salty snack sales, as well as an underestimated tax rate.
As the earnings season approaches, Clapp's analysis suggests a cautious outlook for Hershey, reflecting broader challenges within the packaged food sector. Stakeholders are advised to consider these factors when evaluating the company's performance and future potential.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for The Hershey Co (HSY, Financial) is $163.76 with a high estimate of $211.56 and a low estimate of $120.00. The average target implies an downside of 0.28% from the current price of $164.23. More detailed estimate data can be found on the The Hershey Co (HSY) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, The Hershey Co's (HSY, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for The Hershey Co (HSY, Financial) in one year is $195.69, suggesting a upside of 19.16% from the current price of $164.23. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the The Hershey Co (HSY) Summary page.
