Hershey price target lowered to $179 from $200 at Piper Sandler

Piper Sandler analyst Michael Lavery lowered the firm’s price target on Hershey to $179 from $200 and keeps a Neutral rating on the shares. Cocoa futures continue rising, up 85% for 2025 vs. 2024 levels. Recent management meetings gave the firm a better understanding of its cocoa sourcing. Hershey buys futures contracts and has locked in supply contracts for 2024, but still has exposure for 2025. Piper says Hershey has no pricing actions planned until after mid-year when its ERP transition is complete, and even then, it is also mindful of how much pricing the consumer can bear. The firm trims its numbers to reflect some incremental pressure, but less than it sees in the markets now.