Hershey Co. looks set for a sales surge this summer,driven by big events like FIFA World Cup and America's 250th anniversary . Evercore ISI analysts have boosted their outlook for the chocolate giant,upgrading it to outperform from in-line. Price target: $255 . That's potential 30% jump in share value over next year.
David Palmer,Evercore analyst,shared optimism in a note to clients. He flagged upcoming merchandising,product innovations,and major events as sparks for more chocolate consumption. And a strong Halloween plus a Hershey-themed movie release in late November could push sales higher in year's second half.
This upbeat view comes after rough months for Hershey . Shares dropped over 20% in March and April amid wider market pressures tied to geopolitical tensions,including Iran conflict. Stock's bounced back a bit,but still 17% below late February peak, trading around 19 times 2027 earnings estimates.
Palmer admitted Hershey's chocolate segment's had tough run,lost some market share to brands like Dubai Chocolate,Lindt,Ferrero. Shorter Easter selling period didn't help . Yet he thinks expanding into premium offerings will turn things around next year.
Beyond chocolate,Hershey sees growth chances in other brands—Sour Strips,Jolly Rancher,Lesser Evil,Dot’s Pretzels,SkinnyPop. Palmer stressed potential in company's pipeline,especially in sweets and healthier products. Clear opportunity there...
