As previously reported, TD Cowen downgraded Hershey (HSY) to Market Perform from Outperform with a price target of $200, down from $235. While the company’s Q3 results exceeded the firm’s estimates, management lowered its Q4 view and warned of more headwinds than tailwinds ahead, noted the analyst. Hershey management warned of volume pressure from a major customer, which the firm thinks is Walmart (WMT), reducing merchandising space to improve the shop-ability of its aisle plus cocoa costs are higher than management expected, added the firm, which lowers expected 2024 EPS growth to 5% to reflect higher probability of a guidance reduction from management’s initial 7%-8% growth forecast.
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Read More on HSY:
- Hershey downgraded to Market Perform from Outperform at TD Cowen
- Hershey price target lowered to $212 from $218 at Barclays
- Hershey price target lowered to $236 from $255 at Goldman Sachs
- Hershey (NYSE:HSY) Resumes Slide despite Q3 Beat
- Hershey Reports Third-Quarter 2023 Financial Results; Reaffirms 2023 Net Sales and Earnings Outlook