Goldman Sachs Cuts Hershey (HSY) to Sell; Cycle Has Ended, Says Analyst

Goldman Sachs downgraded Hershey (NYSE: HSY) from Neutral to Sell with a price target of $90.00. Analyst Jason English believes the company has reached the end of a cycle.

"HSY has been on a multi-year beat-and-raise cycle on the back of above-trend North American chocolate gains, productivity realization and cost relief. Investors have been rewarded with strong earnings growth and rerating. We believe this cycle is ending and see risk to expectations and an inflated valuation. We continue to view HSY as a best-in-breed company, but see downside risk for a stock seemingly priced for perfection. HSY is trading near all-time highs and near peak valuation yet, in our view, is on the cusp of a negative expectation recalibration. We lower our FY14-FY16 EPS estimates by 3-6% to reflect lower sales and margin expectations," said English.

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 $101.72 yesterday.

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