RBC Capital Downgrades Hershey (HSY) to Sector Perform

RBC Capital analyst Nik Modi downgraded Hershey (NYSE: HSY) from Outperform to Sector Perform with a price target of $213.00 (from $239.00).

The analyst comments "Our downgrade is based on our latest channel work that suggests the competitive landscape in 2024 is likely to be just as intense, if not more, across Hershey’s chocolate/confection categories in the US, as it appears that Mars and Ferraro/Ferrera will likely elevate their marketing, promotional spend, and innovation in the upcoming year. We believe this would impact Hershey’s quest to regain volume growth and market share. Considering this and adding on the tough macro environment/PL share gains, we also believe it will be difficult for Hershey to realize the net pricing required to fully offset rising sugar/cocoa costs."

For an analyst ratings summary and ratings history on Hershey click here. For more ratings news on Hershey click here.

Shares of Hershey closed at $193.07 yesterday.

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