Hershey (HSY) Stock Forecast & Price Target

Hershey's financial outlook appears positive, supported by an expected pricing increase of 5%-6% in FY25 and a notable 6% organic sales growth in the third quarter, driven primarily by strong performance in the everyday business segment. The company gained market share in four of its top five categories during this period, with retail sales for the everyday business surging by 12% in the most recent four weeks. Additionally, organic sales were bolstered by significant growth across its divisions, including a 10% increase in North American Salty Snacks and a 12% rise in International markets.

Hershey's stock outlook remains negative due to a significant decline in operating profit, which fell 35%, resulting in an 860 basis point contraction of the operating margin to 13.3%. The company's projections indicate a near 39.5% operating profit decline for 4Q25, coupled with a further expected gross margin deterioration of 900 basis points driven by rising cocoa costs and unfavorable tariff expenses. Additionally, Hershey has revised its sales growth expectation downward to 3%, alongside an anticipated significant earnings per share decline of 36.5% for FY25, signaling ongoing financial pressures.