UPDATE: Mizuho Securities Starts Hershey (HSY) at Neutral
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Mizuho Securities analyst John Baumgartner initiates coverage on Hershey (NYSE: HSY) with a Neutral rating and a price target of $196.00.
The analyst comments "We initiate coverage of The Hershey Company (HSY) with a Neutral rating and $196 price target. We view the company as best-in-class for data analytics and cost efficiencies which have yielded steady market share gains and consistent revenue and EPS growth. We also believe strong execution and growth-accretive M&A may drive modest upside to the long-term growth algorithm beginning in FY23E. Until then, we expect limited upside to EPS during FY22E given intensifying cost inflation, hard category comps, and reasonable Street expectations. At 18.2x our CY22E EBITDA (40% premium vs. Food peers and near HSY's historical valuation peak), we expect only modest share appreciation and prefer MDLZ for snacking exposure during 2022."
Shares of Hershey closed at $194.77 yesterday.
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