Jefferies downgrades Hershey to Underperform on structural risks

Jefferies analyst Rob Dickerson downgraded Hershey to Underperform from Hold with a price target of $163, down from $184. Elevated prices and a “stretched” consumer are finally impacting the U.S. snack category and chocolate stands out as amongst the most concerning, the analyst tells investors in a research note. The firm says buy rates versus 2019 is trailing other snacks, and chocolate’s wide price gaps versus other snacks is getting wider. Jefferies sees increased risk of accelerating volume declines amid disadvantaged channel exposure and gummy taking share. It downgraded Hershey to Underperform and cut estimates citing structural risks to the chocolate category.