Dec. 15 at 10:40 PM
$HSY Morgan Stanley upgraded Hershey to overweight from neutral. It also raised its price target to
$211 per share from
$195, implying 16% upside.
“We believe the company is in the early stages of a positive fundamental inflection, with clear and underappreciated visibility into accelerating EPS growth above consensus,” Morgan Stanley analysts said Monday in a note to clients. “After one of the most significant periods of negative revisions in its history, we see the revision curve turning decisively upward, supported by improving category momentum, stabilizing share trends, and a meaningfully improved cost backdrop.”
Hershey has faced several headwinds over the past few years. Last summer, the company told investors it would implement double-digit price increases, on average, across its confection portfolio due to rising cocoa costs.