Target prices

Since we last discussed Hershey (HSY) rejecting the takeover offer by Mondelez on June 30 in No Thanks! Hershey Rejects Mondelez’s Takeover Bid, Wall Street analysts have updated their target prices for the next 12 months. Their recommendations have also changed. Around 94% of analysts now rate Hershey as a “hold” and 6% rate it as a “sell.” No analysts rate it as a “buy.”

Hershey Rejects Mondelez’s Takeover Offer, Wall Street Responds

Analyst target prices for Hershey

The average broker target price for Hershey has risen to $95.5 from $91.23. This represents an increase of 14% from the stock’s closing price of $109.12 on July 20, 2016. Its peers’ target prices and return potentials as of July 20 are as follows:

  • Mondelez (MDLZ) has a target price of $95.50. It surpassed estimates by 14.4%.
  • Kraft Heinz (KHC) has a target price of $90.81. It has a potential to rise by 2%.
  • Kellogg (K) has a target price of $78.20. It surpassed estimates by 11%.

The First Trust NASDAQ-100 Equal Weighted IndexSMFund (QQEW) also invests in MDLZ.

Recommendations for Hershey

UBS has given Hershey the highest target price of $107. Hershey already beat this target by 2% as of July 20. The firm rates it a “hold.”

Goldman Sachs and Bernstein also gave optimistic target prices of $99 and $98, respectively. As of July 20, the company had already beat these estimates by 10% and 11%. They both rate Hershey a “hold.”

Société Générale rates Hershey a “sell” and has assigned a target price of $95.

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