Skip to main content

Market Overview

Why Is Goldman Sachs Sweet On Hershey Stock?

Share:
Why Is Goldman Sachs Sweet On Hershey Stock?

Marking the strongest growth since 2014, Hershey Co (NYSE: HSY) generated robust EBIT growth in 2020 driven by gross margin expansion “that was amplified by expense controls,” according to Goldman Sachs.

The Hershey Analyst: Jason English upgraded the rating for Hershey from Neutral to Buy, while raising the price target from $171 to $181.

The Hershey Thesis: The performance in 2020 was not a one-off and the COVID-19-related impact was “only a modest positive,” English said in the upgrade note.

He believes 2020 “was the beginning of a three-plus-year cycle of outsized growth as the confection industry leverages its unique pricing power to expand the revenue and profit pool at a time when input costs are non-daunting.”

“Mars appears to be leading the charge, presumably as it prioritizes pet and veterinarian verticals for growth. We expect Hershey to follow over time, continuing the long-standing industry practice of unified price moves,” the analyst wrote.

“In our view, the result will be a top-tier growth algorithm that contrasts with a muted growth outlook for many US-centric Staples peers,” he added.

HSY Price Action: Shares of Hershey had risen by 1.26% to $160.12 at the time of publication Thursday.

(Photo: Hershey)

Latest Ratings for HSY

DateFirmActionFromTo
Apr 2021Morgan StanleyMaintainsEqual-Weight
Apr 2021Deutsche BankMaintainsHold
Apr 2021Goldman SachsUpgradesNeutralBuy

View More Analyst Ratings for HSY
View the Latest Analyst Ratings

 

Related Articles (HSY)

View Comments and Join the Discussion!

Posted-In: candy Goldman Sachs Jason EnglishAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
IQVArgus ResearchMaintains260.0
CGTD SecuritiesMaintains10.0
ATZTD SecuritiesMaintains36.0
ABSTCanaccord GenuityMaintains22.0
RZLTCanaccord GenuityMaintains30.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
SPAC
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com