In November, The Hershey Co HSY had raised its full-year net sales, citing strong demand into the Christmas season.
The Derry Township, Pennsylvania-based company could report a beat and raise quarters through 2025, according to UBS.
The Analyst: Cody Ross upgraded the rating for Hershey from Neutral to Buy, while raising the price target from $244 to $269.
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The Thesis: While there are concerns among investors around earnings growth for packaged food companies, there is greater visibility into Hershey than its peers, Ross said in the upgrade note.
“Our NT confidence is underpinned by wrap-around price benefits in 2023 coupled with capacity additions, while our LT confidence is driven by a more accommodative operating environment in Confection and a long runway of growth for sizable Snacks business,” the analyst wrote.
“We believe investors should remain selective heading into 2023 with a focus on positive estimate revisions,” he added.
HSY Price Action: Shares of Hershey had risen by 1.19% to $239.27 at the time of writing Thursday.
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