A Glimpse Into The Expert Outlook On Hershey Through 20 Analysts

Hershey HSY underwent analysis by 20 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $162.95, a high estimate of $195.00, and a low estimate of $120.00. A decline of 7.58% from the prior average price target is evident in the current average.

Analyzing Analyst Ratings: A Detailed Breakdown

The standing of Hershey among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Hershey. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Hershey compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Hershey's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Hershey's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Hershey analyst ratings.

All You Need to Know About Hershey

Hershey is a leading us confectionery manufacturer (around a $25 billion market), controlling around 36% of the domestic chocolate space (per Euromonitor). Beyond its namesake label, the firm's mix has expanded over the last 85 years and now consists of 100 brands, including Reese's, Kit Kat, Kisses, and Ice Breakers. Hershey's products are sold in about 80 countries, albeit with just a high-single-digit percentage of sales coming from markets outside the us, including Brazil, India, and Mexico. The firm has sought inorganic opportunities to extend its reach beyond its core confection business, adding Amplify Snack Brands and its Skinny Pop ready-to-eat popcorn to its mix, Pirate Brands, and Dot's Pretzels over the past few years.

Hershey: Financial Performance Dissected

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Challenges: Hershey's revenue growth over 3 months faced difficulties. As of 30 September, 2024, the company experienced a decline of approximately -1.4%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Staples sector.

Net Margin: Hershey's net margin is impressive, surpassing industry averages. With a net margin of 14.94%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Hershey's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 10.87%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Hershey's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.57%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a high debt-to-equity ratio of 1.34, Hershey faces challenges in effectively managing its debt levels, indicating potential financial strain.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.