Hershey (HSY) improved at Piper Sandler as cocoa pressure eases

The Hershey Company (NYSE:HSY) is one of the 13 Best Consumer Staples Dividend Stocks to Invest in Now.

On January 7, Piper Sandler upgraded The Hershey Company (NYSE: HSY) from neutral to overweight and raised its price target from $193 to $213. The call reflects the easing of cocoa costs and the removal of tariffs on cocoa, which the company says gives Hershey “significant flexibility” to reinvest in the business and grow profits ahead of its long-term algorithm. Analysts believe Hershey is well-positioned to generate sales and profit growth above this algorithm in 2026.

Last October, Hershey raised its full-year sales and profit outlook after reporting better-than-expected quarterly results. Demand held up well for higher-priced chocolates and snacks, boosting management’s confidence in the outlook. The company now expects net revenue growth of around 3% for 2025, up from a previous target of at least 2%. It also raised the low end of its adjusted earnings forecast from $5.81 to $5.90 per share. Sales benefited from an expanded range of healthier, sugar-free products, as well as strong momentum in the chocolate, candy and mints sectors. In North America, Salty Snacks volumes increased 11% year-on-year, driven by brands like SkinnyPop and Dot’s Pretzels. Prices in this category fell 1% during the quarter, which helped support volume growth.

The situation was different in the main confectionery sector in North America. Volumes were down 1%, while prices were up 7%, reflecting a more price-driven approach to this part of the business.

The Hershey Company (NYSE: HSY) operates as a snacks company with three primary segments: North America Confectionery, North America Savory Snacks, and International.

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