Hershey (HSY) Stock Forecast & Price Target

Hershey's portfolio expansion and strategic acquisitions have positioned the company favorably within the confectionery market, controlling approximately 36% of the domestic chocolate aisle and offering over 100 brands globally. For the third quarter, the company reported a 6% organic sales increase, driven by strong performance in its everyday business, which saw retail sales growth of 12% and market share gains across four of its top five categories. The pricing strategy for FY25 has been updated to reflect an anticipated increase of 5%-6%, indicating a positive trajectory for revenue and further strengthening Hershey's market position.

Hershey's recent financial performance indicates significant challenges, with operating profit declining by 35% and a notable contraction in operating margin by 860 basis points to 13.3%. The company anticipates a further decline in operating profit of approximately 39.5% in the fourth quarter of FY25 and projects a gross margin decrease exceeding the prior quarter's decline due to rising cocoa costs and tariff expenses. Furthermore, Hershey has revised its sales growth expectations down to 3% and is forecasting a substantial drop in earnings per share, with estimates reflecting a decline between 36% and 37%, raising concerns about the company's profitability outlook moving forward.