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Hershey shares keep Neutral rating amid challenging commodity market

EditorNatashya Angelica
Published 2024-12-03, 10:40 a/m
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Hershey, listed on the New York Stock Exchange under the stock ticker NYSE:HSY, is navigating a challenging commodity market where key ingredients such as cocoa are experiencing pricing volatility. This has a direct effect on the company's cost structure and profitability, though the company maintains strong fundamentals with an EBITDA of $2.95 billion.

Piper Sandler analyst reiterated a Neutral rating and $168.00 stock price target on Hershey. The firm's analysis indicates that while Hershey is taking proactive steps to manage expenses, the effectiveness of these efforts in the face of continued cost pressures remains to be seen.

In other recent news, The Hershey Company (NYSE:HSY) has made significant strides in diversifying its product portfolio by acquiring Sour Strips, a sour candy brand recognized for its bold flavors and strong social media presence. This acquisition is a part of Hershey's strategic move to tap into new snacking occasions.

In the recent developments, Hershey has projected a steady top-line growth of 2% to 4% for 2025, despite anticipating significant inflation impacts due to rising cocoa and sugar costs. The company is also facing increased pricing pressure in international markets, particularly Mexico and Brazil, and is adapting its portfolio in response to consumer behavior changes influenced by GLP-1 drugs.

These are the recent developments providing insights into Hershey's strategies and performance expectations in the face of market challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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