Hershey (HSY) Stock Forecast & Price Target

Hershey's stock outlook remains positive due to anticipated pricing increases of 5%-6% for FY25, reflecting a slight uptick from previous estimates. The company's organic sales rose 6% in the third quarter, supported by strong performance in its everyday business, which gained market share in four of its five leading categories and experienced a 12% rise in retail sales over the most recent trailing weeks. Additionally, organic sales growth was driven across key divisions, with North American Confectionery growing by 5%, North American Salty Snacks by 10%, and International by 12%, highlighting the company's robust market presence and effective product portfolio expansion.

Hershey's financial outlook is negatively impacted by a significant decline in operating profit, which fell 35% due to gross margin pressures and increased incentive compensation, leading to an operating margin contraction of 860 basis points to 13.3%. Projections indicate a further decline of nearly 39.5% in operating profit for the fourth quarter of 2025, along with a gross margin decline expected to exceed 900 basis points due to rising cocoa costs and unfavorable tariff impacts. Additionally, the company revised its sales growth expectations down to 3%, while earnings per share (EPS) guidance suggests a steep decline of 36.5% for the fiscal year 2025, reflecting ongoing challenges in both domestic and international markets.