Hershey (HSY) PT Lowered to $185 at Stifel

Stifel analyst Matthew Smith lowered the price target on Hershey (NYSE: HSY) to $185.00 (from $195.00) while maintaining a Hold rating.

The analyst commented, "Hershey reported a stronger than expected third quarter including EPS of $1.30, which was $0.23 ahead of our estimate primarily driven by better sales performance, lower than expected operating expenses, and a lower tax rate. Organic sales increased 6% in the third quarter with volume/mix flat and a 6ppt. pricing benefit. The 3Q25 gross margin contracted over 850bps from the prior year to 31.8% due to elevated cocoa, $65m of incremental tariff expense, and unfavorable mix. The company raised its 2025 guidance and now expects sales to grow 3% (+2% previously) and EPS to decline -37% to -36% (-38% to -36%) previously. However, the fourth quarter profit performance is expected to weaken due to higher costs and increased investment support. For 2026, Hershey remains confident in an on-algo performance for both the top and bottom lines. We continue with our Hold rating and lower our target price to $185."

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