uploads///HSY ANR

How Analysts Reacted to Hershey’s Q2 Results

By

Updated

Multiple analysts raised target price on HSY stock

Several analysts raised their target price on Hershey (HSY) stock following the company’s second-quarter release. Credit Suisse raised the target price to $85 from $80, and Deutsche Bank raised it to $101 from $98. Morgan Stanley increased the target price on Hershey stock to $98 from $93 per share.

Hershey reported stronger-than-expected sales and earnings during the second quarter. Incremental sales from the Amplify acquisition and improved volumes drove its top-line growth rate. Hershey’s price restructuring efforts are a positive factor for the company, especially given the increased cost pressures.

Hershey’s bottom line is projected to mark double-digit growth in 2018, led by improved sales and a substantially lower effective tax rate. The company’s management raised the quarterly dividend by 10.0% and announced a $500.0 million stock buyback program.

However, trade promotional spending, increased interest costs, and higher packaging and supply chain costs are expected to hurt the company’s results.

Article continues below advertisement

Ratings and target price

Of the 20 analysts providing recommendations on Hershey stock, 12 analysts maintained a “hold” rating and six analysts gave it a “sell” rating. Two analysts recommended a “buy.” Analysts have a consensus target price of $94.95 per share on Hershey stock, which implies a downside of 4.7% based on its closing price of $99.66 on July 26.

Most of the analysts covering Mondelēz (MDLZ) stock maintained a “buy” rating on the stock.

Advertisement

More From Market Realist