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Research Alert: CFRA Keeps Hold Opinion On Shares Of The Hershey Company
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Research Alert: CFRA Keeps Hold Opinion On Shares Of The Hershey Company
Jul 30, 2025 9:21 AM

11:50 AM EDT, 07/30/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target to $212 from $169, 31x our 2026 EPS estimate of $6.83 (up from $6.75; 2025 also raised to $6.04 from $5.86). This multiple is a steep premium to the long-term average forward P/E of 23x, but we believe it's warranted given the wide range of possible outcomes for 2026. Key variables include cocoa costs, price elasticities, tariff exposure (we expect cocoa to eventually be exempt), and potential strategic shifts under new CEO Kirk Tanner (formerly of Wendy's and PepsiCo). In our view, Q2 results were solid and we think HSY is carrying solid momentum, though this may be masked by tough Y/Y comparisons and unprecedented cocoa inflation and tariffs. All eyes are on 2026 and the potential setup for an above-algorithm year. One wildcard is how the new CEO may approach strategy, as external hires often reinvest more in their first year. We sense investors have mixed feelings about this new CEO given his short tenure at Wendy's. However, his time at PepsiCo should be viewed more valuably.

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