Hershey Faces Better Visibility as Cocoa Deflation Helps, RBC Says

MT Newswires Live
Mar 26

Hershey (HSY) has "the best EPS visibility" through 2026 and 2027 as cocoa prices ease, but ongoing volume declines and market share losses remain a constraint, RBC Capital Markets said in a report Thursday.

RBC said it expects a positive tone at the company's investor day, helped by CEO Kirk Tanner's outside hires and the new perspective they have brought to the business.

The firm highlighted Hershey's recently announced unified US commercial operating model, which brings together the sweet, salty and protein portfolios to operate under ONE Hershey model.

The move could strengthen customer partnerships and deepen consumer connections, while also potentially supporting a more active mergers and acquisitions strategy, analysts noted.

The firm also said cocoa prices have come down sharply from prior peaks, but structural risks remain tied to climate change, crop disease, illegal mining and supply-chain complexity.

RBC maintained its sector perform rating on Hershey and a $212 price target.

Price: 216.02, Change: -0.98, Percent Change: -0.45

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