Key Stats for Hershey Stock
- 1-year price change for Hershey stock: 9%
- $HSY Share Price as of May. 1: $182
- 52-Week High: $239
- $HSY Stock Price Target: $218
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What Happened?
Hershey (HSY) stock got a boost on Thursday after TD Cowen upgraded shares from Hold to Buy, setting a price target of $210 — about 13% above where the stock was trading.
- The firm said it has growing confidence that Hershey will raise its 2026 guidance and return to volume growth by 2027.
- TD Cowen pointed to several near-term catalysts: distribution gains at major retailers, more aggressive in-store merchandising, and a pipeline of new products expected to hit shelves in May and June.
The timing lines up with what management shared on the Q1 earnings call.
- CEO Kirk Tanner highlighted strong spring shelf reset wins across grocery, mass, dollar, and drug channels.
- The company also has a full slate of tent-pole events planned for the summer, including activations around the U.S. 250th anniversary celebrations and S’mores season.
- A major Hershey brand innovation targeting accessible premium chocolate is set to launch in Q4, alongside the release of the Hershey movie.
- Hershey stock also got support from solid Q1 numbers.
- EPS came in at $2.35, well ahead of the $2.04 forecast.
- Revenue hit $3.1 billion, topping expectations of $3.02 billion.
- Gross margins are expected to improve by nearly 300 basis points in Q2 and accelerate further in the back half of the year as the company laps higher cocoa costs incurred in 2025.
TD Cowen specifically flagged cocoa deflation as a tailwind. Management confirmed on the call that they expect a larger cocoa surplus in 2025 and 2026, with potential for further price declines that could boost margins in 2027 and beyond.
The company’s hedging program gives it good visibility into costs through this year and into next.
Price elasticities are also holding better than expected following recent price increases.
Consumers haven’t pushed back as much as the company had modeled — a positive signal that Hershey stock carries real pricing power in this environment.
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What the Market Is Telling Us About Hershey Stock
Despite the earnings beat, Hershey stock edged slightly lower in pre-market trading. That kind of reaction isn’t unusual when results are already well anticipated.
The bigger question is whether the volume recovery story plays out in the back half of the year.
TD Cowen’s upgrade suggests the market may be underestimating that recovery.
With 5 analysts revising earnings estimates higher and 56 consecutive years of dividend payments, Hershey stock has a lot working in its favor for patient investors.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
