Hershey (HSY) Stock Forecast & Price Target

Hershey's stock demonstrates a positive outlook, supported by an expected pricing increase of 5%-6% for FY25, up from a previous expectation of 5%. The firm's organic sales rose by 6% in the third quarter, driven primarily by a robust performance in its everyday business, which achieved a 10 basis points market share increase and recorded retail sales growth of 12% over the most recent four weeks. Additionally, organic sales were particularly strong across different divisions, with North American Confectionery growing by 5%, North American Salty Snacks by 10%, and International by 12%.

Hershey has experienced a significant decline in operating profit, down 35%, contributing to an 860 basis point contraction in operating margins, now at 13.3%. The company anticipates a further 39.5% decline in operating profit for 4Q25, alongside expectations of gross margins declining by 900 basis points due to rising cocoa costs and unfavorable tariff expenses. Additionally, Hershey has lowered its FY25 EPS guidance to $5.95, representing a decline of 36.5%, with a steep 49.5% drop forecasted for 4Q25 amid ongoing challenges impacting gross margins and sales projections.