Hershey Analyst Raises Forecast, 'Stock Tempting As A Chocolate Bar, But Risks Remain,' After Q1 Results
Portfolio Pulse from Priya Nigam
Hershey Co (NYSE:HSY) reported better-than-expected Q1 earnings, leading Wells Fargo analyst Chris Carey to maintain an Equal Weight rating while raising the price target from $200 to $205. Despite the positive results, Carey warns of potential risks due to slowed growth, inflation, and volume trends. He suggests that HSY's stock is tempting but cautions investors about the company's medium- and long-term targets. Carey also adjusted his fiscal 2024 earnings estimate slightly upwards from $9.58 to $9.59.
May 06, 2024 | 4:19 pm
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Hershey Co reported better-than-expected Q1 earnings, leading to a price target increase from $200 to $205 by Wells Fargo. However, concerns about growth, inflation, and volume trends may pose risks.
The positive earnings report and subsequent price target increase by Wells Fargo suggest a potential short-term positive impact on HSY's stock. However, the analyst's caution regarding growth, inflation, and volume trends introduces uncertainty, which could temper any significant short-term gains. The slight adjustment in fiscal 2024 earnings estimates further indicates a cautious optimism.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100