UPDATE: Goldman Sachs Upgrades Hershey (HSY) to Buy on Progress Through Fundamental Bull Cycle

April 15, 2021 1:16 AM EDT
Get Alerts HSY Hot Sheet
Price: $171.11 --0%

Rating Summary:
    10 Buy, 13 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 19 | Down: 6 | New: 57
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(Updated - April 15, 2021 3:15 AM EDT)

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."

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 $158.19 yesterday.


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