Argus Research Downgrades Hershey; Will Consider Changing it Back

Today, Thursday, Argus, Downgraded shares of Hershey Corp HSY to Hold from Buy. The research firm has primarily cited the company's revenue growth slowing significantly in the first quarter, and lower customer traffic at convenience stores. The firm is also concerned with the fact that management lowered its 2014 forecast for international revenue growth to 15 percent from its previous range of 15 percent - 20 percent. The firm continued to add, “We are lowering our 2014 EPS estimate from $4.16 to $4.09.” Additionally, the firm believes that the stock's current valuation “adequately” reflects the management's guidance and that a HOLD rating is appropriate. The firm also believes that if revenue exceeds the firms' expectations, it would consider returning the stock back to its Buy list. Argus closed it off by this statement, “We continue to have a favorable view of the company's long-term prospects, both in the U.S. and internationally, and are maintaining our long-term BUY rating.” Shares of the company are up .2 percent.