Hershey (HSY) Stock Forecast & Price Target

Hershey's has demonstrated robust performance in its core markets, with organic sales increasing by 6% in the third quarter, driven by the everyday business that gained market share. The company’s pricing for FY25 is now expected to rise by 5%-6%, reflecting strong demand and effective pricing strategies, while retail sales for the everyday business surged by 12% in the recent trailing four weeks. Additionally, all divisions reported positive growth, particularly in North America, where organic sales rose 5% in Confectionery and 10% in Salty Snacks, highlighting the firm's ability to capitalize on both its established brand portfolio and recent acquisitions.

Hershey's financial performance has exhibited significant challenges, with a reported 35% decline in operating profit and an 860 basis point contraction in operating margin, now at 13.3%. The company's outlook for fourth quarter 2025 is particularly troubling, forecasting a nearly 39.5% decline in operating profit and a gross margin decrease of approximately 900 basis points due to escalating cocoa costs and tariff expenses. Additionally, Hershey has adjusted its sales growth expectations down to 3% from a previous estimate of 2%, while projecting a sharp decline in earnings per share, down to between $5.90 and $6.00, reflecting broader margin pressures and a deteriorating financial environment.