Hershey (HSY) | News Based Sentiment Analysis

• On September 16, 2025, Goldman Sachs dramatically upgraded Hershey's stock rating from 'Sell' to 'Buy', increasing its price target by 30.59% from $170.00 to $222.00, a move that signaled a positive outlook for the company's growth despite ongoing challenges. This upgrade provided a strong counterpoint to previous bearish sentiment and injected optimism into the stock.
• Despite the positive analyst shift, Hershey anticipates a significant 36-38% decline in adjusted EPS for 2025, revealed on September 11, 2025, primarily due to a roughly 250% increase in cocoa prices over the past three years. The estimated cost of goods sold for 2025 is $7.3 billion, a 64% increase from 2020, highlighting a major profitability hurdle.
• Hershey continued its product innovation strategy, expanding the Shaq-A-Licious XL Gummies line on September 10, 2025, with new flavors following a successful 2024 launch that saw over 11 million units sold, contributing to a roughly 12% increase in the company's share price in the recent quarter. This demonstrates the potential of new product lines to drive growth even amidst broader economic pressures.
• A technical "sell signal" was issued for HSY stock on September 16, 2025, following a pivot top point, and the stock experienced a 1.40% decline. This technical indicator suggests potential downward momentum, adding another layer of complexity to the investment picture.
• On September 23, 2025, Hershey's stock price fell by 0.83%, closing at $190.74 with decreased trading volume, moving within a range of $189.82 to $192.92. This price decrease, coupled with lower volume, could indicate waning investor enthusiasm.
• The consensus EPS forecast for Hershey's Q3 2025 is $1.06, based on 9 analysts, a significant decrease compared to the $2.34 EPS reported for the same quarter last year. The earnings report is scheduled for November 6, 2025, and will be a crucial test of the company's ability to navigate the challenging cost environment.
• As of September 21, 2025, 31 analysts covering Hershey have a "Hold" consensus rating with an average price target of $181.10, despite recent upgrades like BNP Paribas Exane to 'outperform'. This suggests a cautious outlook among many analysts, even with some positive revisions.

The Investment Story: September 2025 was a month of conflicting signals for Hershey, with a major analyst upgrade battling against significant cost pressures and a weakening stock price. The company is attempting to balance innovation and cost management in a volatile environment.

What It Means for Investors: The mixed signals create uncertainty. While the Goldman Sachs upgrade and product innovation are encouraging, the declining EPS forecast and technical sell signal raise concerns about short-term performance. Investors should carefully weigh the risks and opportunities.

Looking Ahead: Investors should closely monitor cocoa prices, the impact of cost-cutting measures, and the Q3 2025 earnings report on November 6, 2025. The success of new product launches will also be a key factor.

The Bottom Line: Hershey presents a complex investment picture. The company's proactive measures offer some reassurance, but continued monitoring of key indicators and a cautious approach are essential given the challenging cost environment and divided market sentiment.