The Hershey Company, the Consumer Defensive sector company, was revisited by a Wall Street analyst yesterday. Analyst Megan Alexander from Morgan Stanley maintained a Hold rating on the stock and has a $184.00 price target.
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Megan Alexander’s rating is based on a combination of factors that present both opportunities and challenges for The Hershey Company. Despite a strong third-quarter performance and increased full-year guidance, the company’s shares fell, which can be attributed to mixed commentary and a more cautious outlook from management regarding 2026. While management remains confident in achieving growth targets, there is skepticism about the sustainability of this growth due to concerns about consumer health and elasticity, especially following a weaker Halloween season.
Megan Alexander also notes that while there are positive signs such as accelerating chocolate trends and favorable tariff conditions, there are significant risks. These include elevated elasticity risk, potential for increased reinvestment needs, and execution challenges under new leadership. Additionally, the stock’s valuation is considered high both in absolute terms and relative to peers. These mixed factors contribute to the Hold rating, as the stock is likely to face both upward and downward pressures in the near term.
In another report released today, UBS also maintained a Hold rating on the stock with a $190.00 price target.
HSY’s price has also changed slightly for the past six months – from $167.190 to $171.160, which is a 2.37% increase.