UPDATE: Goldman Sachs Upgrades Hershey (HSY) to Buy on Progress Through Fundamental Bull Cycle
- Futures dip as focus turns to retail earnings
- AT&T (T) to Merge Media Assets with Discovery (DISCA) in Blockbuster Deal, Valuation Estimated at $150 Billion
- Bitcoin (BTC) Hits 3-Month Lows Before Bouncing as Musk Confirms Tesla Has Not Sold Any BTC
- Bill Gates Left Microsoft (MSFT) Board Amid Probe Into 'Intimate Relationship': WSJ
- Oil prices stable on confidence in demand recovery
Goldman Sachs analyst Jason English upgraded Hershey (NYSE: HSY) from Neutral to Buy with a price target of $181.00 (from $171.00).
The analyst comments "HSY delivered its most robust year of EBIT growth since 2014 last year as price-driven sales growth drove gross margin expansion that was amplified by expense controls; Covid-related impact was only a modest positive. Rather than a one-off, we believe 2020 was the beginning of a three-plus year cycle of outsized growth as the confection industry leverages its unique pricing power to expand the revenue and profit pool at a time when input costs are non-daunting. Mars appears to be leading the charge, presumably as it prioritizes pet and veterinarian verticals for growth. We expect Hershey to follow over time, continuing the long-standing industry practice of unified price moves. In our view, the result will be a top tier growth algorithm that contrasts with a muted growth outlook for many US-centric Staples peers. We expect this fundamental outperformance to translate into sustained stock price outperformance and upgrade HSY to Buy, from Neutral, as a result."
Shares of Hershey closed at $158.19 yesterday.
You May Also Be Interested In
- UPDATE: Sidoti Upgrades Systemax (SYX) to Buy, Says Earnings Selloff is Excessive
- UPDATE: BofA Securities Downgrades New York Mortgage Trust (NYMT) to Underperform
- Unisoft Entertainment SA (UBI:FP) (UBSFY) PT Lowered to EUR74 at Berenberg
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst PT Change, Hot Comments, Hot Upgrades, Upgrades
Related EntitiesGoldman Sachs
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!