Citi Downgrades Hershey (HSY) to Sell

Citi analyst Thomas Palmer downgraded Hershey (NYSE: HSY) from Neutral to Sell with a price target of $182.00 (from $195.00).

The analyst comments "We are downgrading Hershey (HSY) shares to Sell from Neutral. Our target price goes to $182 from $195, which implies 7% potential downside in the share price. We see a challenging year for gross margin given HSY’s recently announced pricing plans for 2025 (+MSD) will likely not be enough to offset cocoa inflation (especially in 1H25). HSY’s current volume trends have underwhelmed, in part due to continued distribution declines in measured retail channels. Price elasticity could also be particularly challenging for HSY next year (especially if chocolate competitors do not follow HSY’s lead on pricing) given other snacks categories (especially salty snacks) could be lowering prices. We appreciate 2026 earnings could be much improved, but the starting point from which HSY grows could be lower than expected."

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 $196.41 yesterday.

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