Hershey (HSY) Stock Forecast & Price Target

Hershey's positive outlook is supported by an anticipated pricing increase of 5%-6% for FY25, an adjustment reflecting improved profitability prospects. The company's organic sales rose by 6% in the third quarter, driven by strong performance in its everyday business, which gained market share in four out of its top five categories. Additionally, the retail sales growth of 12% in the everyday segment, combined with strong performance across its North American confectionery and salty snacks divisions, underscores the firm's expanding market presence and resilience in a competitive landscape.

Hershey's recent financial performance indicates significant challenges, with a 35% decline in operating profit and an 860 basis points contraction in operating margin, now at 13.3%. For the fourth quarter of 2025, Hershey anticipates a nearly 39.5% operating profit decline, coupled with a projected gross margin decrease of 900 basis points, driven primarily by heightened cocoa costs and tariff expenses. Moreover, the company's sales growth expectations have been reduced to 3%, and earnings per share (EPS) for the fiscal year are forecasted to decline by 36.5%, highlighting persistent pressures on profitability.